Turtle Beach told shareholders it is exploring a sales process

Turtle Beach

06/05/2022 24:14

By Svea Herbst-Bayliss
    NEW YORK, May 5 (Reuters) - Gaming equipment company Turtle
Beach Corp  HEAR.O  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  BAC.N  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.  urn:newsml:reuters.com:*:nL2N2VO2Q7
    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)
 ((svea.herbst@thomsonreuters.com; +617 856 4331; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))