STREET INSIDER – Mar 12 – Osmium Partners owns 14.1% of Spark Networks common stock, making it the company's largest shareholder. The following is a short version of the open letter sent to the shareholders of Spark Networks.
Dear Fellow Shareholders,
For years we have acted as strong shareholder advocates. This letter highlights the prolonged underperformance and the critical need for significant change in the Company’s Board of Directors. Since the current CEO was appointed on June 15, 2006, Spark’s market capitalization has declined by 25%. Match.com has grown 4.5 times faster than Spark Networks. Since 2013, shareholders who purchased the 9.76M shares from Great Hill Partners and the company for $6.15/share have lost 22% of their investment.
We deserve change. If elected, our slate of Director Nominees would focus on the following Action Plan:
- Review the current strategy and direct marketing investments of Christian Networks and direct the allocation of capital in the best interests of shareholders.
- Ensure that management will be held accountable for delivering superior and sustainable corporate performance
- Examine all aspects of the Company’s user experience and appropriate service offerings with respect to competition.
- Provide visible metrics
- Lead the Company to embrace best practices in corporate governance and remove shareholder unfriendly By-laws.
- Evaluate all strategic alternatives to maximize shareholder value.
Sincerely,
John H. Lewis
The full article was originally published at Street Insider, but is no longer available.
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I get what Spark Networks is trying to do. They’ve been fantastically successful with their hallmark niche product, and it only makes sense to try and duplicate that magic into another niche. The Christian niche makes the most sense. And they spent gangbusters to get to critical mass. Now lets see how the users vote. Spark Networks stock will live or die based on the performance and loyalty they’ve built over the last year with ChristianMingle. Personally, I really hope they succeed and we see the stock rally.
I get what Spark Networks is trying to do. They’ve been fantastically successful with their hallmark niche product, and it only makes sense to try and duplicate that magic into another niche. The Christian niche makes the most sense. And they spent gangbusters to get to critical mass. Now lets see how the users vote. Spark Networks stock will live or die based on the performance and loyalty they’ve built over the last year with ChristianMingle. Personally, I really hope they succeed and we see the stock rally.
and Greg Liberman responds here…
http://www.sec.gov/Archives/edgar/data/1314475/000119312514077776/d683341dex991.htm
and basically says John Lewis is on the board, but not welcome to take over the company with additional controlling board members…and how about some ideas for improving the company?! Greg’s all ears.
A good retort. The plot thickens.
and Greg Liberman responds here…
http://www.sec.gov/Archives/edgar/data/1314475/000119312514077776/d683341dex991.htm
and basically says John Lewis is on the board, but not welcome to take over the company with additional controlling board members…and how about some ideas for improving the company?! Greg’s all ears.
A good retort. The plot thickens.