Elliott Builds Norwegian Cruise Stake, Alleges Overspending on Katy Perry Concert

Ignacio Gonzalez and Liana Baker

Wed, February 18, 2026 at 9:29 AM GMT+9 2 min read

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Bloomberg

(Bloomberg) – Activist investor Elliott Investment Management has built a stake of more than 10% in Norwegian Cruise Line Holdings Ltd., citing concerns about management and spending on events including a Katy Perry concert.

The activist investor said the company’s outlays have failed to create shareholder value and outlined a path for the shares to reach $56. Norwegian rose 12% to $24.10 in New York trading Tuesday for its biggest one-day gain since April, giving the Miami-based company a market value of almost $11 billion.

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Elliott said in a statement that the board’s succession decisions have weighed on shareholder value and questioned the recent appointment of a long-tenured board member without cruise-industry executive experience, calling for a more rigorous process.

“This is the first we are hearing from Elliott Investment Management,” a representative for Norwegian said in an emailed statement. “We are committed to delivering durable, long-term value creation, which will be led by our recently appointed CEO, John Chidsey. We look forward to sharing additional information on our earnings call on March 2.”

The stake disclosure follows Norwegian’s announcement last week that Chief Executive Officer Harry Sommer was stepping down immediately and being replaced by Chidsey, a former Subway Restaurants Inc. CEO, in what the cruise line called a “strategic leadership change.” Elliott said it has identified qualified executives to serve on Norwegian’s board, some of whose members face reelection in March.

Elliott also pointed to what it described as questionable spending, including flying guests to Reykjavik, Iceland, hosting a concert by pop star Perry and curating fine art experiences at sea, while the stock has lagged peers.

The cruise industry has benefited from rising demand as travelers opt for lower-priced vacation options. Royal Caribbean Cruises Ltd. and Carnival Corp. have reported increased bookings and higher repeat customers, underscoring resilient appetite for travel. The strength has been reinforced by upbeat outlooks and fleet expansion plans.

Since the start of 2023, Norwegian shares have risen 97% through Tuesday’s close, lagging gains of 305% at Carnival Corp. and 555% at Royal Caribbean Cruises Ltd. over the same period.

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