This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Alex Meruelo Responds To Recent Announcements By Digital Generation, Inc.

Stocks in this article: DGIT

LOS ANGELES, July 16, 2013 /PRNewswire/ -- Alex Meruelo and Meruelo Investment Partners LLC today issued the following statement regarding Digital Generation, Inc. (Nasdaq: DGIT) ("DG," "Company"):

Alex Meruelo, Meruelo Investment Partners LLC together with related entities ("Meruelo") are the largest stockholders of DG with beneficial ownership exceeding 14%. Recently, the DG board of directors (the "Board") announced certain corporate governance changes along with the date of the Company's 2013 annual stockholder meeting. With a strong commitment to DG, and an unwavering focus on maximizing value for all stockholders, Meruelo strongly urges the Board to take further actions to improve the performance of the Company through changes to the composition of the Board, and to implement further corporate governance changes.

Pushed by our previous actions, two independent directors were added at the 2012 annual stockholders meeting.  And, as a result of our continued pressure, the Board now proposes to institute an independent chair, and a delayed process to declassify the Board over a two year period following the 2013 annual meeting. 

However, Meruelo does not believe that these steps are enough to address the urgent problems which significantly disadvantage DG's performance.

As Meruelo has shared in numerous discussions with the Board and management in the last several months, Meruelo believes that the composition of the Board continues to be a primary cause of DG's underperformance.  Certain members of the Board were responsible for approving excessive compensation for DG's executive chair, and adopting a poorly run (and ultimately failed) strategic review process that disrupted DG's business and operations. 

The Board continues to represent a reputational hazard for the Company, continues to take actions that undermine the operational and strategic plans that management seeks to implement, and has failed to address the significant short position in this stock.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs