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Activist Letters

Rovi Pleas With Shareholders: We Need One More Shot

Engaged Capital is battling Rovi over the board. Per a letter today, Rovi reaches out to shareholders to once again urge them to vote against Engaged. Here's our summary: 

ENGAGED CAPITAL’S NOMINEES HAVE CLEAR RECORDS OF VALUE DESTRUCTION

David Lockwood:

  • Track record of stockholder value destruction – Lockwood presided over negative alpha at Unwired Planet (negative 64%), Liberate Technologies (negative 44%), InterTrust Technologies (negative 2%), BigBand Networks (negative 38%) and EnergySolutions2 (negative 57%)

Glenn Welling:

  • No IP experience; little to no technology experience. No operational experience. Another track record of stockholder value destruction – Look at Engaged Capital's results at Abercrombie & Fitch, which has been operating with four Engaged Capital-approved directors for over a year. During that timeframe, alpha has been negative (56%).

Raghavendra Rau:

  • More stockholder value destruction – Alpha at Aviat Networks was negative (152%) during Rau’s Board tenure, and it was  negative (110%) during his tenure at SeaChange International.

ENGAGED CAPITAL HAS NO PLAN TO DELIVER ENHANCED VALUE

Even at this late stage in the proxy campaign, Engaged Capital has not yet presented a plan for Rovi.

ROVI HAS THE RIGHT PLAN IN PLACE TO DELIVER STOCKHOLDER VALUE

Rovi’s Board has openly acknowledged past mistakes and has implemented a clear plan to drive value for Rovi stockholders. Rovi is experiencing momentum and traction in our licensing business and with our next-generation products, as demonstrated by recent agreements with Charter, Dish, Verizon and others.