SBS Shareholder Wants TV Operations Spun Off, Pres. And CEO Jobs Split
May 30, 2012 at 4:07 AM (PT)
SPANISH BROADCASTING SYSTEM shareholder ATTIVA CAPITAL PARTNERS LTD. is pushing the company to spin off its MEGA TV and MEGA FILMS operations and to separate the positions of Chairman and CEO, ATTIVA disclosed in an SEC Form SC 13D filing MONDAY (5/29).
The filing disclosed that ATTIVA "is currently in discussions with other shareholders of SBS on the idea that the Company should separate ('spin-off') the MEGA TV and MEGA FILMS franchises by selling its majority stake to a bigger media company that has the financial resources, the content and distribution network required to make MEGA TV & FILMS a successful franchise in the Hispanic market in U.S. and Latin America. SBS should then use the proceeds to reduce high yield debt, strengthen its balance sheet and eventually return some capital to its shareholders in the not so distant future. SBS should just keep a 'strategic minority interest' in MEGA TV and MEGA FILMS as it builds a multi-media platform. The Company should be aware of the new trends in the Hispanic Market where online video outlets, social media sites and e-commerce sites are challenging traditional television’s ad money."
On separating the Chairman and CEO jobs, ATTIVA wrote that the company should "stay true to its motto 'the largest publicly traded Hispanic-controlled media and entertainment company in the U.S.' by running SBS as a public company and not as a 'RAUL ALARCON Company' as it 'still does advertise' in (sic) some radio stations."
And while ATTIVA praised SBS' open conference calls, it added that it would "also like to see the Honorable Board Members of SBSA step in and take advantage of these historical low prices, not by awarding more Options to Executive and Officers, but instead, by buying the stock in the Open Market. If they don’t they should resign and offer that opportunity to others willing to join the company and build Long Term Shareholder Value."