Hasbro Dungeons & Dragons has won the fight against investor investors

A classic Dungeons & Dragons hand-painted dragon by 27-year-old Alan Cooley of Huntington Station on November 26, 2019 at the Main Street Game Cafe in Huntington.

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Hasbro has faced a board challenge from an activist investor who wanted to shake his board and take away the profit of the toy division that includes Dungeons & Dragons.

On Wednesday, the Rhode Island company said its shareholders had voted to re-elect its 13 directors by “a significant margin,” according to preliminary voting balances.

“Voting indicates that our highly skilled and newly renewed board has directly relevant experience and expertise in overseeing Hasbro’s global asset portfolio in a variety of gaming and entertainment categories,” the company said on Wednesday.

The proxy fight was sparked by Alta Fox Capital Management, which is worth about $ 325 million with a 2.5% stake in the company. Alta Fox appointed five directors to the company’s board in February, but narrowed it down to a list before Wednesday’s vote.

Alta Fox wanted to remove Hasbro’s current “brand plan” strategy and proposed eliminating the company’s Wizards of the Coast and digital gaming business as part of a broader push to increase the company’s consumer products and entertainment divisions.

“After five consecutive years of poor performance compared to the S&P 500 and a longer period of questioning corporate governance, Alta Fox believed that a change of board was needed at the beginning of the CEO’s term,” said Connor Haley, a senior partner at Alta Fox. , he said in a statement Wednesday.

“We ran a fact-based campaign: absolute and relative poor performance, numerous capital allocation errors under longtime executives, and very poor outreach that reflects an island culture,” he said. “Although we are disappointed with the outcome of this year’s meeting, we agree with Institutional Shareholders Services, Inc.” All shareholders are likely to benefit from the campaign. “

Alta Fox told shareholders that the spinoff in February would increase the value of Hasbro’s shares by $ 100. The toy giant denied that claim, saying that separating the Wizards of the Coast from its main business would be detrimental to the division and the company as a whole.

Hasbro’s strategy uses storytelling to boost toy sales. Under the leadership of former CEO Brian Goldner, the company successfully expanded beyond its core business to television, film and digital gaming.

It uses toy brands like Transformers and My Little Pony to feed movies and TV shows, and then to boost toy sales. The company is producing a Dungeons & Dragons movie and TV show through eOne. He has also used these brands for publications, clothing and accessories.

Shares of Hasbro fell by less than 1% at the close of trading on Wednesday.

Hasbro Dungeons & Dragons has won the fight against investor investors

Source link Hasbro Dungeons & Dragons has won the fight against investor investors

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