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Starboard Takes $350 Million CarMax Stake, Seeks Board Seats

Ryan Gould, Crystal Tse, David Carnevali, Liana Baker
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⚡ Quantum Brief
Activist investor Starboard Value LP acquired a $350 million stake in CarMax, targeting the used-car retailer’s turnaround under new CEO Keith Barr, who assumes leadership in March 2026. Starboard nominated its CEO Jeff Smith and Frontdoor Inc. Chairman Bill Cobb for CarMax’s board, signaling aggressive push for operational changes. The move follows CarMax’s recent struggles, with Starboard aiming to leverage Barr’s leadership to accelerate recovery and boost shareholder value. The stake represents roughly 1.5% of CarMax’s market cap, per Bloomberg data, marking Starboard’s latest high-profile activist campaign. No immediate response from CarMax, but the board nominations suggest potential governance clashes ahead.
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Starboard Value LP has amassed a stake of about $350 million in CarMax Inc. and sees an opportunity to accelerate the used car retailer’s turnaround under incoming Chief Executive Officer Keith Barr.The activist investor has nominated its own CEO, Jeff Smith, to the CarMax board, along with Bill Cobb, the chairman and CEO of Frontdoor Inc., according to a statementBloomberg Terminal Wednesday confirming an earlier Bloomberg News report.

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Source: Bloomberg Markets

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