April 1, 2013
/PRNewswire/ -- Starboard Value LP (together with its affiliates, "Starboard"), one the largest shareholders of Tessera Technologies, Inc. (NASDAQ:TSRA) ("Tessera" or the "Company") with approximately 7.6% of the outstanding common stock of the Company, announced today that it has delivered an open letter to the shareholders of Tessera, the full text of which is included below:
April 1, 2013
Open Letter to Shareholders of Tessera Technologies, Inc.
Dear Fellow Shareholders:
Starboard Value LP, together with its affiliates ("Starboard"), currently owns approximately 7.6% of the outstanding common shares of Tessera Technologies, Inc. ("Tessera" or the "Company"), making us one of the Company's largest shareholders. Our interests are directly aligned with yours, and we continue to believe that there is significant value to be realized at Tessera. We appreciate the strong words of support we have received from many of you in response to our involvement and the recent positive changes we have helped to effect at Tessera. There is still a great deal to be accomplished and we will continue to press for actions and changes that we believe are in the best interests of all shareholders.
Since the filing of our original preliminary proxy materials on
March 15, 2013
, the Company has announced the following significant corporate developments:
- Restructuring initiatives that include exiting the camera module and lens manufacturing operations of the Company's DigitalOptics Corporation business segment ("DOC") and general and administrative cost reductions; and
- Changes in management and on the Board, including a search for a new chief executive officer to replace Robert Young, the naming of Richard Hill as the Company's new Chairman of the Board to replace Robert Boehlke, the Board's decision not to re-nominate Mr. Boehlke, Dr. Young, and Anthony Tether for election to the Board at the 2013 Annual Meeting (the "Annual Meeting"), and the addition of three newly-appointed, independent directors to the Board.
We believe these changes are entirely reactionary to our involvement and are being undertaken merely to attempt to appease shareholders in the midst of this election contest. The speed of the Company's about-face is nothing short of astonishing. It was less than one month ago that the Board issued a letter expressing unequivocal and unanimous support for Dr. Young, and touting the Company's "significant and strong actions to increase long-term stockholder value." The announced restructuring actions and pending departures of Mr. Boehlke and Dr. Young are positive events, but do not constitute a holistic solution to Tessera's overarching problems.