Shareholder to Oppose Sale of Register.com
Register.com Inc. shareholder Mark Cuban said Wednesday that he planned to vote against the company’s proposed sale to Vector Capital Corp., saying the $200-million transaction would be disastrous to investors.
Cuban, owner of the Dallas Mavericks basketball team, said last month that he held a 14% stake in Register.com and sought a seat on the board.
Register.com, which manages 2.9 million Internet domain names, has received at least five takeover offers since January 2003, including Tuesday’s $7.81-a-share bid from San Francisco-based investment firm Vector Capital.
“The $200-million offering price does not come close to fairly valuing the business of this company,” Cuban, who founded Broadcast.com and later sold it to Yahoo Inc., said in a statement.
Register.com shares Wednesday rose 6 cents to $7.86. They have gained 34% in the last year.
“We are disappointed by Mr. Cuban’s statement since he declined the company’s invitation to participate in the board’s value-maximization process or even to address the board as to his thoughts for the company’s future,” Register.com interim Chief Executive David Moore said.
Moore said that the Vector transaction was the best available after an auction process and that “most shareholders will agree.”
Cuban’s recent purchases of Register.com stock included 1.1 million shares June 30 with $8.47 million of personal funds, according to a filing with the Securities and Exchange Commission. The company said June 29 that Cuban had bought a 9.1% stake.
Vector was started by Alex Slusky, who previously led the technology equity practice at Ziff Bros. Investments.