Deals
Etsy Targeted by Black-and-White for Review Including a Sale
An Etsy necklace hangs on a mannequin in the craft lab at the company's headquarters in Brooklyn.
Photographer: Victor J. Blue/BloombergThis article is for subscribers only.
Etsy Inc. is being targeted by hedge fund Black-and-White Capital LP, which is urging the online marketplace for hand-made goods to explore strategic alternatives, including a possible sale, as it undertakes various operational and governance improvements.
Black-and-White, which says it owns about 2 percent of Etsy, is publicly releasing its proposals and criticisms after months of private talks, according to correspondence obtained by Bloomberg. The firm highlighted Etsy’s need to re-accelerate revenue growth and reduce operating costs, which it described as “bloated,” the letter shows.