LOS ANGELES--(BUSINESS WIRE)--Howard Marks is pleased to announced the formation of “Concerned Stockholders of United Online” (“CSU" or "we"). CSU is dedicated to maximizing stockholder value and improving corporate governance at United Online (Nasdaq: UNTD). We welcome the opportunity to pursue these goals at the Company’s annual meeting of stockholders (the “Annual Meeting”) expected to be held in June of 2016. We believe that United Online stockholders deserve the opportunity to vote in new directors.
As of November 2, 2015, members of CSU owned 4.8% percent of United Online, Inc. (“UNTD”) – more than all shares owned by the incumbent Board of Directors of UNTD.
CSU believes that United Online enjoys talented management. What United Online lacks is a Board that can motivate management to fully maximize value for stockholders. A new and revitalized Board can be effective at setting up incentive systems to produce the best possible results from management for its owners. CSU asks that the incumbent Board refrains from taking actions adverse to the best interests of stockholders until the stockholders get a chance to vote in a new/enhanced Board. Actions adverse to the best interests of stockholders would include, but are not limited to: (i) implementing a poison pill; (ii) delaying the annual meeting; (iii) using cash for acquisitions; and/or (iv) increasing the size of golden parachutes.
Howard Marks is the founder and co-chair of Start Engine, Los Angeles' largest startup accelerator. Mr. Marks was the founder and CEO of Acclaim Games (now owned by The Walt Disney Company), and Chairman of Activision Studios from 1991 to 1997.
In 1991, Mr. Marks bought into Activision when it was at the edge of bankruptcy. Marks and his brethren took on operating roles and transformed Activision from a company that was disappointing stockholders into an industry giant. Equity investors in Activision have seen a more than 50 x return on their investment. CSU member Cannell Capital LLC was an investor in Activision.
On January 16, 2015, Mr. Marks launched a campaign to unlock stockholder value at Envivio, Inc. (Nasdaq: ENVI) in conjunction with Cannell Capital LLC. This campaign received strong support from stockholders. Envivio stock had performed terribly in the years leading up to the start of Mr. Marks' campaign, but after the launch of the campaign, Envivio stock performed well.
Mr. Marks, CSU and Cannell Capital LLC are working to benefit every stockholder of United Online. Mr. Marks has pledged to change executive compensation so that executive compensation is more heavily weighted towards performance. He has also pledged to cut the compensation of non-executive directors.
Mr. Marks and CSU wish to run a simple, smooth and non-disruptive election, in strict accordance with regulatory guidelines and in strict accordance with Delaware corporate law.
Mr. Marks will publish a detailed and lengthy presentation pointing out the opportunity for improvement at United Online. This presentation will be similar to his presentation to Envivio stockholders. Mr. Marks’ Envivio presentation can be viewed at http://www.concernedenvivioshareholders.com/ and can also be viewed at http://www.concernedenvivioshareholders.net