Activist investors increased their campaign activity in the first half of 2026, launching 136 global campaigns, a 5% increase compared to the first half of 2025. However, there was a notable shift in strategy, with activists prioritizing demands for mergers and acquisitions (M&A), particularly company sales, over board control through proxy fights. This is reflected in a substantial decrease in proxy fights going to a final vote, down from eight in the first half of 2025 to just two in the first half of 2026. Goldman Sachs' Avinash Mehrotra noted that activists are seeking to avoid "expensive" proxy fights.
Demands for M&A activity were the most frequent, making up 21% of all campaigns in the first half of this year, compared to 14% in 2022. This trend is driven by activist investors who believe it's simpler to push for a company sale than to spend time and resources trying to fix operational issues. Jim Rossman, global head of shareholder advisory at Barclays, highlighted a "big jump in demands for mergers and acquisitions."
Elliott Investment Management remained the most active, initiating 12 campaigns in the first half and managing to secure 11 board seats through settlements, rather than contested votes. Other prominent activists like Starboard Value and Engine Capital also gained board seats via negotiated settlements. Overall, activists saw a 17% drop in the number of board seats won compared to the previous year, attributing this to fewer battles going to a vote. The United States saw the bulk of the activity, with 68 campaigns, a 13% increase from the previous year. More than half of all global campaigns targeted technology and industrial companies, which investors deem susceptible to AI disruption.
Several specific campaigns illustrate this trend: TOMS Capital is pressing Devon Energy to sell assets or the company itself, Starboard Value is pushing for changes at Dynatrace, and Elliott has taken a position in Bio-Rad Laboratories. Additionally, Jana Partners is advocating for payments and Ancora Alternatives is urging specialty chemicals company Ashland to sell itself. These actions underscore a renewed focus on M&A amid a rebounding deal market and a regulatory environment in the U.S. perceived as more favorable.
Despite a slower first quarter, activity significantly picked up in the second quarter with 74 campaigns recorded, indicating a busy period ahead for activist investing. The overall shift to M&A demands reflects a strategic adaptation by activists to achieve their goals more efficiently and cost-effectively.
