Hedgefund News Wrap: Week Ending 03/25/2016

VIRGIN AMERICA FOR SALE… MAYBE

(USA TODAY) – The Richard Branson backed U.K airline, Virgin American Inc., might be for sale. Less than two years after going public, the Burlingame, Calif.-based carrier is seeking a potential buyer. Whether the sale is for the entire company or just a part, is still undisclosed.

With fierce competition in the skies, Virgin still saw a $109.9 million profit in the fourth quarter of 2015, a healthy jump from the $3.9 million reaped during that period in the previous year. With the rumors circling around, shares rose 13 percent at the close on Wednesday to $34.72, valuing the company at $1.5 billion.

Read the entire article at USA TODAY
More coverage: Forbes and Bloomberg Business

TiVo + ROVI = MERGER

(The New York Times) – It was released Thursday morning that TiVo is reportedly in talked with Rovi for a potential merger. An early pioneer of digital-video recorders, TiVo Inc. has soared as much as 23 percent since the news broke.
While some reports discuss a merger, some state that TiVo is selling itself to Rovi Corp. According to reports, the deal would consist of both cash and stock with TiVo shareholders holding around 30 percent of the combined company.

Rovi is no stranger to these waters, as it was formed through the 2008 merger of Macrovision and Gemstar and is not one of the largest owners of patents for digital entertainment devices.

Read the entire article at The New York Times
More coverage: Bloomberg Business and Business Insider

PROXY FIGHT STARTED TO OUST ENTIRE YAHOO BOARD

(Reuters) – Hedge fund Starboard Value LP released a letter outlining its hopes to remove the entire board of Yahoo Inc., including CEO Marissa Mater. Owning 1.7 percent of Yahoo, Starboard started a battle over the future of the failing web giant as it is pressing ahead with an auction of its core Internet business (search, mail and news sites).

“We have been extremely disappointed with Yahoo’s dismal financial performance,” Starboard said in its latest letter to Yahoo, adding that its need to officially launch a proxy fight was “unfortunate.” Yahoo responded that they will “respond in due course” and review Starboard’s nine nominated nominees.

But here’s the kicker, Yahoo co-founder David Filo not only hold the largest stake, at, 7.5 percent, but is still active on the board. Furthermore, people close to the situation have stated that a proxy fight could hinder the auction effort, but Starboard insists that the shake up is to ensure that the core business is properly sold.

Read the entire article at Reuters
More coverage: The Wall Street Journal and USA Today