Turtle Beach told shareholders it is exploring a sales process
By Svea Herbst-Bayliss
NEW YORK (Reuters) – Gaming tools firm Turtle Seaside Corp on Thursday mentioned it’s exploring a gross sales course of because it considers methods to maximise worth for shareholders.
In a letter to shareholders, the corporate mentioned it has engaged with potential patrons on three separate events within the final 5 years and that it employed Financial institution of America final yr to spearhead the method.
“Primarily based on that outreach, we signed 10 (non disclosure agreements) and held 9 administration conferences,” the letter mentioned.
The corporate mentioned in its letter there isn’t a assure that discussions will result in a transaction.
The corporate has been participating in ongoing discussions with a minimum of two strategic patrons, two sources conversant in the matter mentioned on Thursday. The corporate has additionally obtained calls from monetary patrons who is perhaps excited about making an acquisition, the sources mentioned.
Within the letter, which was launched a day after the corporate reported quarterly earnings, the corporate mentioned some potential patrons had beforehand advised the corporate they had been breaking off discussions as a result of Turtle Seaside “had an excessive amount of reliance on console gaming headsets and the cyclicality that comes with that.”
Hypothesis has mounted in regards to the firm’s future because it faces a boardroom battle with hedge fund Donerail Group which is attempting to oust all six Turtle Seaside board members, together with CEO Juergen Stark. Traders will vote on who sits on the board subsequent month.
Turtle Seaside’s inventory has fallen 33.47% since January and tumbled 19.90% on Thursday to shut at $14.81.
(Reporting by Svea Herbst-Bayliss; Modifying by Chris Reese)
