Management for TV Everywhere technology vendor Synacor Inc. on Friday resisted demands by two activist shareholders to terminate an ongoing CEO search and put the company up for sale.
"Synacor's board, management and employees remain dedicated to our growth plans, new products and emerging market opportunities ahead," the company said in its statement, obtained by the Buffalo News and Multichannel News. "These strategic investments in new products are essential to future growth, and already Synacor has received strong positive responses from customers."
The company's stock price has plummeted along with its sales over the last two years, with shares dropping from a value of $17.34 on July 9, 2012 to a current trading price of just $2.59.
Synacor, which provides TV Everywhere portals and authentication technology to Charter Communications (Nasdaq: CHTR), Verizon (NYSE: VZ), CenturyLink (NYSE: CTL), Atlantic Broadband and several mid-sized distributors, saw fourth-quarter net income drop to $200,000 compared to $800,000 in Q4 2012. It posted $29.4 million in revenue, down from $32.2 million this time last year.
On Thursday, JEC Capital Partners and Ratio Capital, which together own about 5 percent of Synacor, issued a letter calling for the company to be sold immediately to the highest bidder. The replacement search for former CEO Ron Frankel, who left in March, should also be terminated, the investors said.
Earlier this month, it was revealed that these two investors were seeking seats on the company's board.
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