United Online Gets Unsolicited Buyout Offer

0

Los Angeles investment firm B. Riley Capital Management has proposed to purchase all of United Online Inc.’s outstanding shares, which the Internet company acknowledged on Monday.

“United Online’s board of directors, in consultation with its financial and legal advisors, will carefully review and evaluate the proposal from B. Riley,” the company said in a statement.

The Woodland Hills company has been hit with turmoil lately. On a Nov. 3 conference call with analysts, Francis Lobo announced his resignation as chief executive of United. The following day, Howard Marks, co-founder of the StartEngine startup accelerator in Santa Monica and the former chairman of Activision, the video-game developer that is now part of Activision Blizzard Inc. in Santa Monica, announced the creation of Concerned Stockholders of United Online. The group controls around 4.8 percent of United Online shares.

United Online owns several Internet service provider companies, as well as websites and the customer loyalty program MyPoints and mobile commerce app Swappable.

In recent years the company has divested its web assets. The floral ecommerce site FTD Cos. Inc. was spun off in 2013. Earlier this year United Online sold social media site Classmates.com for $30 million, and it has announced plans to sell StayFriends, a European social media site.

United Online shares on Tuesday closed down 34 cents or 2.8 percent to $11.37 on the Nasdaq.

No posts to display