The board of directors for play and entertainment company Hasbro told shareholders in a letter Monday (May 9) that the current group deserves their support when they vote during the company’s annual meeting next month, despite efforts by activist investors Alta Fox to shake things up.
Alta Fox is pushing to oust three members of Hasbro’s board, including the chairman, in the June 8 vote.
“The Hasbro Board is fully aligned with (CEO) Chris (Cocks),” the board of directors wrote in its letter to shareholders. “He has only been Hasbro’s CEO for about 100 days, but his gameplan to unlock value for shareholders is clear: grow our world class portfolio of brands and amplify our industry-leading gaming portfolio by putting the consumer at the center of everything we do and creating direct relationships with our fans.”
Hasbro recently appointed Liz Hamren and Blake Jorgensen to its board of directors.
“Liz and Blake each have a strong track record of driving change and value creation, and they bring valuable critical thinking in digital gaming, technology, brand development and capital allocation,” the board letter to shareholders says. “They will advise and challenge Chris and the entire management team, along with the full Board, to drive our multigenerational play and entertainment strategy in games and the future of direct, interactive entertainment.”
The board says Cocks will lead Hasbro in the right direction, in concert with directors who share his vision.
“With the support of our Board, Chris is focused on applying the capital discipline and winning decision-making that he successfully demonstrated during his time at Wizards to the rest of the business to position Hasbro for long term success and superior shareholder returns,” they wrote.
Related: Activist Fund Alta Fox Campaigns to Oust Hasbro Chairman
Alta Fox, meanwhile, continues to work with other investors to vote against reelecting the company’s chairman and two other board members at its annual shareholders’ meeting. Alta is the biggest shareholder in Hasbro, with a 2.5% stake.
According to Connor Haley, the fund’s managing partner, Hasbro’s board was “arrogant, insular and ineffective,” not taking his proposals seriously.
Alta Fox has said Hasbro is undervalued because of the influence of the Hassenfeld family, which founded the company. The company has reportedly rejected two takeover offers in 1996 and 2010 which would’ve benefited shareholders, focusing on acquisitions, such as a $4 billion deal for media company Entertainment One in 2019. Hasbro has about 1,500 brands including Magic: The Gathering, Nerf, Monopoly and Play-Doh.
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