InfoSpace responds to shareholder concerns

Mobile search solutions developer InfoSpace issued its official response to the recent announcement by shareholder and investment management firm Sandell Asset Management, which said it plans to nominate three independent candidates for election to the InfoSpace board of directors.

"We are always interested in the views of our shareholders and appreciate those expressed by Sandell Asset Management in our conversations with them," said InfoSpace chairman and CEO Jim Voelker in a prepared statement. "We look forward to continuing our dialogue. Our Board and management team are mindful of the mandate to deliver high performance and shareholder returns. We regularly review the Company's business plan and the value inherent in that plan--and will take a measured and decisive approach to continuing to do what we believe is in the best interests of all shareholders." InfoSpace added it will present its own board of directors nominees in a definitive proxy statement it will file with the SEC and mail to all shareholders eligible to vote at its 2007 annual shareholders meeting.

Sandell, which owns about 8.8 percent of InfoSpace shares, contacted the mobile firm last week to voice concern over its "lack of capital return to shareholders from InfoSpace's large cash balance and complacency over cost controls," requesting that InfoSpace immediately return $300 million cash "in the form of a $200 million Dutch tender offer at a premium to the current share price and a $100 million special dividend."

For more on the InfoSpace response:
- read this release

Related articles:
- EMI files $100M royalty lawsuit against InfoSpace
- InfoSpace slashes 40% of workforce
- InfoSpace mobile media head Davis resigns