April 14, 2011
/PRNewswire/ -- FrontFour Master Fund, Ltd., an affiliate of FrontFour Capital Group LLC (collectively, "FrontFour"), today announced that it has delivered a letter to stockholders of Fisher Communications, Inc. (Nasdaq: FSCI).
The full text of the letter follows:
April 14, 2011
Dear Fellow Fisher Communications, Inc. Stockholder:
DO NOT BE MISLED BY FISHER'S ATTEMPT TO DISTRACT STOCKHOLDERS' ATTENTION FROM THE COMPANY'S DISASTROUS PERFORMANCE OVER THE PAST FIVE YEARS
WE ARE NOT SEEKING TO TAKE CONTROL OF FISHER FOR OURSELVES OR FOR HUNTINGDON
OUR QUALIFIED NOMINEES ARE COMMITTED TO RESTORING STOCKHOLDER VALUE AND WILL DEMAND ACCOUNTABILITY FROM MANAGEMENT
FrontFour Master Fund, Ltd., together with its affiliates (collectively, "FrontFour"), is a long-standing stockholder of Fisher Communications, Inc. ("Fisher" or the "Company"). We are seeking your support to elect a slate of four highly qualified candidates to the Board of Directors of Fisher Communications, Inc. ("Fisher" or the "Company") at the 2011 Annual Meeting of Stockholders. By now you may have received a letter from the Board of Directors of Fisher, dated
April 12, 2011
. This letter is full of misleading propaganda, half-truths and false claims about FrontFour that are self-serving and intended to entrench the Board and senior management.
The Fisher Board has resorted to misleading you about our intentions in hopes of distracting you from the real issue in this election contest -- namely, that this Board has failed absolutely in its duty to protect and grow the value of your investment in the Company.
THE BOARD HAS PRESIDED OVER MASSIVE LOSSES OF STOCKHOLDER VALUE AND HAS FAILED TO HOLD FISHER'S PRESIDENT AND CEO ACCOUNTABLE FOR HER SEVERE UNDERPERFORMANCE TO DATE
The fact remains that no matter how hard they may try, no scare tactics or wild claims about FrontFour looking to hijack the Company can hide the obvious truth concerning the failures, poor track record and serious shortcomings under the leadership of the Company's President and CEO,
Over five years ago, on
October 10, 2005
, a new President and CEO was put in place with the promise of implementing an operational turnaround. Under Ms. Brown, Fisher has continuously and seriously underperformed despite its ownership of valuable television broadcast assets in
(top 25 DMAs), leading radio stations, and Fisher Plaza, a 300,000 square foot mixed use building in
April 1, 2006
, when Ms. Brown first implemented her strategic plan for the Company,
Fisher's shares have lost 48% of their value
, as of
December 31, 2010
. Adding insult to injury, over this same time period, Fisher has spent
on three acquisitions that have failed to generate returns. Despite these substantial investments, equity value has declined from
$363 million to $190 million
. In other words, Ms. Brown
has presided over the destruction of $173 million
of the Company's equity value over the past five years.
COLLEEN BROWN'S BOARD-SUPPORTED STRATEGIC PLAN HAS FAILED TO DELIVER
From an operational perspective, Ms. Brown has fared no better. She has underdelivered on her promises and Fisher's broadcast cash flow ("BCF") margins continue to trail the BCF margins of its competitors.