JEC Capital Partners and Ratio Capital Partners – two dissident shareholders in Synacor that together hold almost 10% of the company’s common stock, continued to press for a change in board leadership at Synacor, which specializes in Web start pages and TV Everywhere authentication technologies.
In an open letter to the board issued on August 18, JEC Capital and Ratio Capital claimed that “[b]oard change at Synacor is so urgently needed that we are willing to pay the costs of a Special Meeting so shareholders can effectuate the removal of Chairman Jordan Levy and Director Andrew Kau.”
Unhappy with Synacor’s performance, those investors have previously demanded the resignation of Levy while also suggesting that Synacor to drop its search for a new CEO and to instead seek a sale. Synacor has gone in a different direction, recently hiring former Comcast exec Himesh Bhise to CEO, and pursuing a plan that, it believes, will help Synacor return to growth and keep the company autonomous.
In their latest letter, the shareholders again presented a list of grievances, noting among them that the Synacor board recently increased equity compensation for each director who is re-elected to the board even though the company’s stock price is down about 60% from its IPO price.
“We are so confident that an overwhelming number of Synacor shareholders are in support of changes to the Board that we will pay the costs of the Special Meeting,” the shareholders said. “If the Board is confident in the results of a shareholder vote, it should not be afraid to call a Special Meeting of Shareholders at our expense.”
Synacor declined to comment on the latest offer made by JEC Capital Partners and Ratio Capital.
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