Starboard Takes $350 Million CarMax Stake, Seeks Board Seats (2)

Starboard 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 statement Wednesday confirming an earlier Bloomberg News report.

Starboard supports Barr, who starts this month, and is optimistic the former InterContinental Hotels Group CEO can be a catalyst for change at CarMax, Smith wrote ...