Viex Capital Advisors increased Position in Yume Inc
Viex Capital Advisors has filled a SC 13D/A form regarding Yume Inc
Why Viex Capital Advisors Holds Yume Inc
Purpose of Transaction
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Item 4 is hereby amended to add the following:
On May 27, 2016, Mr. Singer was elected to the Board with overwhelming stockholder support, receiving approximately 80% of the votes cast at the Annual Meeting.Mr. Singer interpreted the voting results from the Annual Meeting as a clear and urgent mandate from stockholders to address the Issuer’s underperformance.In order to fulfill this mandate and discharge his fiduciary duties as a director, at the Annual Meeting, Mr. Singer requested that Board and committee meetings be immediately scheduled.In response, neither the Chairman of the Board, Jayant Kadambi, nor the Lead Independent Director, Daniel Springer, each of whom are the only persons authorized to call meetings of the Board, would agree to schedule a Board meeting until August 2016.In a separate conversation with the Chairman of the Nominating and Governance Committee, Adriel Lares, Mr. Singer requested that he be appointed to committees of the Board.Mr. Lares responded that there was no need for Mr. Singer’s appointment to any committee since in his opinion, he believed each of the committees were well functioning.Mr. Singer took this response as a clear indictment of the poor governance of the Issuer.Despite the Issuer’s claims in its press release dated May 27, 2016 that it appreciated the opportunity to engage with stockholders in connection with the Annual Meeting, the Board’s lack of urgency to call a Board or committee meeting and failure to appoint Mr. Singer or Mr. Nader to any committee, suggests that the Board has no regard for stockholder input.
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CUSIP NO. 98872B104
Following the certification of the vote for the Annual Meeting, Mr. Singer sent a written request to the Issuer requesting certain information pertinent to the issues facing the Issuer and Board processes, including information on cost rationalization, capital allocation, strategic discussions, and compensation practices.The information requested was of a nature that should have been readily available to deliver to any director upon request and was requested to allow for Mr. Singer’s active and informed participation on the Board.When most of the requested information was not timely delivered to Mr. Singer, Mr. Singer sent a second request.The Issuer’s response to both requests has been woefully inadequate, leaving Mr. Singer with no recourse but to seek legal remedies.
Accordingly, on June 16, 2016, Mr. Singer filed a lawsuit in the Court of Chancery of the State of Delaware against the Issuer, asking that the Court compel the Issuer to provide access to and copies of certain books and records of the Issuer to Mr. Singer, which Mr. Singer seeks in his capacity as a director of the Board.A copy of the complaint is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
Mr. Singer believes the failure of the Board to schedule a Board meeting promptly following the Annual Meeting and its refusal to provide all of the information requested by Mr. Singer to fulfill the stockholder mandate and his fiduciary duties as a director, evidences a Board that has no regard for the will of stockholders.The Reporting Persons had hoped that following the Annual Meeting, the Board would desire to work constructively with Mr. Singer and Mr. Nader to address the Issuer’s cost structure, misguided capital allocations, questionable compensation practices and corporate governance issues.Instead, it seems apparent that the Board desires to maintain the status quo to the detriment of all stockholders.If the Board continues to marginalize Mr. Singer in the Board room, the Reporting Persons will have no choice but to seek a reconstitution of the Board at next year’s annual meeting of stockholders.
Yume Inc Hedge Funds Ownership
Latest SEC filings show 43 hedge funds and institutional investors own Yume Inc. The institutional ownership of the company in Q1 2015 is low, at 17.12 % of the shares outstanding. They decreased by 182728 the total shares they hold. As of that quarter these institutional investors owned 5939765 shares. A total of 4 funds opened new positions in Yume Inc and 14 increased their holdings. There were 7 funds that closed their positions and 14 that reduced them.
First Republic Investment Management Inc is the most positive institutional investor on Yume Inc, with ownership of 17234 shares as of Q1 2015 for less than 0.01% of the fund’s portfolio. Mark N. Diker Diker Management Llc is another positive player owning 1810351 shares of the company or 1.70% of their stocks portfolio. CA Glynn Capital Management Llc have 1.38% of their stock portfolio invested in the stock for 694642. Further, Horrell Capital Management Inc disclosed it had purchased a stake worth 1.41% of the fund’s stock portfolio in the company. The CA Lyon Street Capital Llc was also a notable investor in the firm, owning 437018 shares. Yume Inc is 0.98% of the fund’s stock portfolio.
Company Profile
YuMe, Inc. (YuMe) is an independent provider of multi-screen video advertising technology, connecting brand advertisers, digital media property owners and consumers of video content across a range of Internet-connected devices. The Company operating segments include Domestic and International. The Company offers advertising customers end-to-end marketing solutions by combining data-driven technologies with deep insight into audience behavior. The Company also offers demand-side platform (DSP), called YuMe for Advertisers, to find relevant audiences and deliver targeted advertising, and a supply-side platform (SSP), called YuMe for Publishers (YFP 5.0), which helps aggregate audiences, define audience characteristics and offer monetization opportunities for digital media property owners. Its technologies serve the specific needs of brand advertisers and enable them to find and target brand-receptive audiences across a range of Internet connected devices and digital media properties.
Form 13D is SEC filing that must be submitted within 10 days, by anyone who acquires beneficial ownership of more than 5% of any publicly traded securities. A filer must promptly update its 13D filing in case of acquisition or disposition of 1% or more of the securities that are the subject of the filing. These filings may be a precursor to hostile takeovers, company breakups, and other “change of control” events.
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