Bill Holdings Inc. stock gained on Wednesday after the San Jose–based business-payments platform was exploring strategic options, including a potential sale, as it faces mounting pressure from activist investor Starboard Value LP, reported Bloomberg, citing people familiar with the matter.
The company has reportedly engaged a financial adviser to gauge interest from both larger industry players and private equity firms.
While no final decision has been made, the discussions signal that Bill is assessing ways to unlock value for shareholders following a sharp decline in its stock price this year.
Shares have lost about 45% of their value in 2025, leaving the company with a market capitalization of roughly $4.7 billion.
However, the stock climbed 15.3% to $53.7, marking its best day since August.
The company, which provides payments and expense-management services for small and mid-sized businesses, has been grappling with lower customer spending and heightened competition in a consolidating sector.
Starboard’s influence and governance changes
Bill’s strategic review comes shortly after Starboard Value, the activist investor led by Jeff Smith, disclosed a stake in the company earlier this year and entered into a cooperation agreement in October.
Under the deal, Bill added four new independent directors to its board, including one selected by Starboard, and committed to holding an investor day in the first half of 2026.
Starboard’s involvement reflects broader investor unease about Bill’s performance and growth trajectory.
Shares of the company, which went public in late 2019 with a strong debut, rising 61% on its first trading day, have since retreated significantly from their highs.
The stock reached an all-time intraday high of $348.50 on November 8, 2021, but has since fallen more than 37% this year, even after Wednesday’s rebound.
The company’s decline has mirrored broader pressure on high-growth technology and fintech names that soared during the pandemic but have since struggled with profitability and competitive dynamics.
Payments sector sees rising consolidation
Bill’s exploration of a sale comes amid increased merger activity across the global payments industry, as large players and private-equity firms look to consolidate smaller competitors.
In one of the sector’s biggest recent deals, Global Payments Inc. agreed in April to acquire Worldpay for more than $24 billion.
Industry observers say Bill could attract interest from both strategic buyers seeking to expand their small-business payments footprint and financial sponsors betting on a turnaround.
However, the terms, valuation, and structure of any potential deal remain unclear, and the company could still decide to remain independent.
Starboard’s involvement in Bill is part of a broader activist push by the hedge fund.
The firm recently disclosed stakes in companies including Tripadvisor and Qorvo, the latter of which announced plans to merge with Skyworks Solutions, creating a $22 billion radio-chip company expected to close in 2027.
While it remains uncertain whether Bill will pursue a sale or continue independently, the review highlights the growing scrutiny of underperforming fintech firms amid changing market conditions.
With activist investors pressing for operational improvements and industry peers consolidating, Bill’s next move will likely be closely watched by both shareholders and competitors.
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