With gambling site on a roll, gemstar deals suit to Youbet.ONLINE betting firm Youbet.com is locked in a tangle with Verb 1. tangle with - get involved in or with get into change state, turn - undergo a transformation or a change of position or action; "We turned from Socialism to Capitalism"; "The people turned against the President when he stole the election" its largest outside investor, Rupert Murdoch-controlled Gemstar-TV Guide International Gemstar-TV Guide International, Inc. is a media company that licenses interactive program guide technology to multichannel operators, such as cable and satellite television providers, and consumer electronics manufacturers, video recorder scheduling code under brands such as VCR Inc. Los Angeles-based Gemstar, which holds warrants convertible into a 51 percent stake in Youbet, filed suit in Delaware Chancery Court The Chancery Court of York is an ecclesiastical court for the Province of York of the Church of England. The presiding officer, the Official Principal and Auditor, has been the same person as the Dean of the Arches since the nineteenth century . on Sept. 5 seeking to postpone Youbet's scheduled annual meeting on Sept. 26 until the Woodland Hills-based firm "provided full and fair disclosures" about two proposed proxy measures. The proposals, including one that creates a 67 percent supermajority Supermajority A corporate amendment in a company's charter requiring a large majority (anywhere from 67%-90%) of shareholders to approve important changes, such as a merger. voting requirement for any amendments to Youbet's charter, are "blatant attempts" to keep Gemstar from exercising its voting rights Voting rights The right to vote on matters that are put to a vote of security holders. For example the right to vote for directors. voting rights The type of voting and the amount of control held by the owners of a class of stock. , Gemstar alleged. The dispute arose from a two-year old deal in which Gemstar, whose TVG TVG TV Guide (magazine) TVG Televisión de Galicia TVG Tierversuchsgegner (German: Antivivisection) TVG Television Games Network TVG Toronto Venture Group TVG Tri Valley Growers TVG Time-Variable Gain cable network carries horse races Flat races Argentina
"The Track Content and Patent License Agreement with Youbet.com is part of a sound growth strategy," said Mark Wilson Mark Wilson may refer to:
Two years later, Youbet's business has improved, to the point where the warrants may actually have some value. In the second quarter ended June 30, Youbet's revenues surged to $13.8 million from $6.1 million in the like year-ago period. The company still loses money, but its stock price has risen to $2.87 a share at the Sept. 18 close from $1.36 at the time the deal was signed. Currently, Gemstar owns 14 percent of Youbet; its remaining warrants are exercisable at a price of $2.50 each. Gemstar alleges that Youbet's board is trying to protect the interests of its executives, including co-founder and Vice Chairman David Marshall who controls a 25 percent stake. When Gemstar complained to Youbet last month, its chairman, Charles Champion, said that it wouldn't "violate or impede" Gemstar's rights, but failed to either "withdraw or modify" the two measures, according a letter from Gemstar Executive Vice President Stephen Kay to Youbet General Counsel Victor Crallo. The letter was disclosed by Youbet in a Sept. 10 filing with the Securities and Exchange Commission. Youbet spokeswoman Ly Lau said the company "is not in a position to comment" about the suit. But in a letter to Gemstar that was filed with the SEC on Sept. 10, Gallo said that Gemstar told Youbet that it didn't wish to own a majority stake. He notes that Gemstar has yet to fully exercise its options, which expire in March. |
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