Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Exclusive-Gaming gear provider Turtle Beach nears board deal with Donerail -sources

Stock Markets May 15, 2022 05:16PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Visitors play video games with Turtle Beach headphones at the Paris Games Week, a trade fair for video games in Paris, France, October 26, 2016. REUTERS/Benoit Tessier
 
US500
-1.04%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
HEAR
-1.06%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Svea Herbst-Bayliss

(Reuters) -Donerail Group is close to reaching a settlement with Turtle Beach (NASDAQ:HEAR) Corp that will give the activist investment firm representatives on the U.S. gaming gear company's board of directors, people familiar with the matter said on Sunday.

Donerail, which has beneficial ownership of 7.4% of Turtle Beach's outstanding shares, has criticized the maker of gaming headsets and controllers for operational missteps and has been pushing the company to sell itself. Turtle Beach maintains it has been doing its best to find a buyer at an attractive price.

Turtle Beach has agreed to add three Donerail nominees to its board, expanding it from six to nine directors, the sources said. One director is expected to retire at the annual meeting next month.

This comes after major Turtle Beach shareholders informed the company they planned to back Donerail's board director nominees at June's meeting, the sources added. Donerail in March said it planned to replace the entire board, including Chief Executive Juergen Stark, with its own candidates. The settlement will spare Turtle Beach this board challenge.

Turtle Beach's board has formed a strategic review committee handling the process to sell the company and it will have four members, including two Donerail directors, according to the sources. Donerail's managing partner Will Wyatt will be an adviser to that committee, the sources said.

If Turtle Beach is not sold within 120 days, a Donerail principal and another director that Donerail would be allowed to help select would join the board.

The sources said the settlement between the two sides could be announced as early as Monday and asked not to be identified because the matter is confidential.

Turtle Beach, which has a market value of $275 million, declined to comment.

Its stock price has fallen 42% over the last 52 weeks compared with a 3.4% decline in the S&P 500 index.

Turtle Beach said earlier this month it has engaged with potential buyers on three separate occasions in the last five years.

Last year, Donerail offered to buy Turtle Beach for $36.50 per share. In March, Donerail said it had withdrawn the offer.

Turtle Beach recently received new acquisition interest, according to the sources and has been in discussions with at least two strategic buyers. The company expects to have reached out to more than 50 parties as part of the sales process, one of the sources said.

Exclusive-Gaming gear provider Turtle Beach nears board deal with Donerail -sources
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email