NEW YORK (TheStreet) --Shutterfly Inc.'s (SFLY) shareholders, Mario Cibelli and Marathon Partners Equity Management LLC, said today that they would support a possible sale of the company, Reuters reports.
Cibelli, the managing member of Marathon Partners, has a 5.29% stake in the online-photo sharing company, while Marathon Partners has a 5.27% stake in Shutterfly.
In a letter to the Shutterfly board, Cibelli said he would support a sale but "only at a price that fairly compensates the shareholders for the upside they would forgo," Reuters added.
Private equity firm Silver Lake is said to be in advanced talks to buy Shutterfly for $2 billion, according to Reuters.
Shares of Shutterfly are up by 0.39% to $49.97 in mid-morning trading on Friday.
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Separately, TheStreet Ratings team rates SHUTTERFLY INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SHUTTERFLY INC (SFLY) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."