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What: Shares of ValueVision Media (NASDAQ:VVTV) were soaring today, up as much as 11% and finishing up 7% after shareholders voted for a change in the home-shopping network's board of directors.
So what: The Clinton Group, an activist investor firm which has been agitating for a board change, reported that in preliminary vote tallies from the annual shareholders meeting, shareholders "expressed overwhelming support" for change in the board. The Clinton Group said that it expected six of the eight directors to be new once the election was certified.
Now what: The Clinton Group and ValueVision have been embroiled in a long debate with Clinton Group President Gregory Taxin accusing the company of consistent underperformance, and for not creating a plan to take advantage of its distribution agreements with cable and satellite. ValueVision's current board defended itself, of course, noting that those members have led the stock up 166% and delivered positive sales growth. It's too soon to tell if Clinton's nominees will be able to drive any additional value for shareholders, but clearly, the group's fellow investors bought its argument. ValueVision has missed earnings estimates in its last two reports, and has operated at a loss in its last three years.
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