Salem Radio Network News Tuesday, May 24, 2022

Science

Turtle Beach told shareholders it is exploring a sales process

By Svea Herbst-Bayliss

NEW YORK (Reuters) – Gaming equipment company Turtle Beach Corp on Thursday said it is exploring a sales process as it considers ways to maximize value for shareholders.

In a letter to shareholders, the company said it has engaged with potential buyers on three separate occasions in the last five years and that it hired Bank of America last year to spearhead the process.

“Based on that outreach, we signed 10 (non disclosure agreements) and held 9 management meetings,” the letter said.

The company said in its letter there is no guarantee that discussions will lead to a transaction.

The company has been engaging in ongoing discussions with at least two strategic buyers, two sources familiar with the matter said on Thursday. The company has also received calls from financial buyers who might be interested in making an acquisition, the sources said.

In the letter, which was released a day after the company reported quarterly earnings, the company said some potential buyers had previously told the company they were breaking off discussions because Turtle Beach “had too much reliance on console gaming headsets and the cyclicality that comes with that.”

Speculation has mounted about the company’s future as it faces a boardroom battle with hedge fund Donerail Group which is trying to oust all six Turtle Beach board members, including CEO Juergen Stark. Investors will vote on who sits on the board next month.

Turtle Beach’s stock has fallen 33.47% since January and tumbled 19.90% on Thursday to close at $14.81.

(Reporting by Svea Herbst-Bayliss; Editing by Chris Reese)

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