Social networking and video over the Internet isn't working so well for Broadcaster Inc., a Chatsworth, Calif.-based company. At least that's what activist hedge fund Baytree Capital Associates LLC believes.
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According to a letter attached to an activist Securities and Exchange Commission filing on Friday, Baytree Capital director Michael Gardner believes the company is in a "dire situation," and he charged that Broadcaster has "failed to adhere" to board directives. "The board identified one specific merger candidate with which it instructed management to execute a letter of intent," Gardner wrote. "Management executed the letter of intent but cancelled it the following day without any explanation or notice to the board."
Gardner also charged in the SEC filing that Broadcaster's board directed management to cut employees from 50 to 12, but that management did not "terminate" the employees. The letter was addressed to Broadcaster chief operating officer Nolan Quan. The $8 million stock market capitalization company operates broadcaster.com, an Internet entertainment network. - Ron Orol
See Schedule 13D filing via SEC Edgar
Ron Orol is a Washington-based reporter for The Deal and author of Extreme Value Hedging: How Activist Hedge Fund Managers Are Taking on the World.
Comments
I would like to know if all the submitted videos on broadcaster.com were deleted. Because you see, this site was the only one where I could watch full episodes of some of my favourite shows like Justice League and I would like to know IF they've been tranfered somewhere else, where they would be.
Thank you.
Kykywox