The Hedge Fund Going After Olive Garden Wants Buy A Company That Makes 3D Movies Possible

RealD GlassesWikimedia CommonsRealD glasses.

Hedge fund Starboard Value wants to buy RealD, the company that makes 3D movies happen. 

If Starboard Value sounds familiar, it might be because Starboard Value is the hedge fund that published a 294-slide presentation on Olive Garden that included suggestions from how the company should cook its pasta to how it should serve breadsticks.

Now, the hedge fund founded by Jeff Smith wants to be in the 3D movie business.

In a filing with the SEC disclosed on Wednesday evening, Starboard offered to acquire all of the outstanding shares of RealD it does not already own for $US12. 

Starboard currently owns 9.9% of RealD. 

Following the news, RealD shares were up more than 25% on Thursday.

In a letter sent to the RealD board of directors, Starboard wrote, “Although we share much of your excitement and enthusiasm about the future of the business, we also believe that, as a public company, RealD will not be best positioned to execute against these opportunities.”

Starboard added that ie believes it, “can be a good long-term partner for RealD given our deep knowledge of the technology markets as well as our expertise in strategic refocusing, improved operational execution, and more efficient capital allocation.”

So, not as exciting as telling the company it’s take-out containers are too expensive.

Here’s the full letter from Starboard to RealD’s board:

Starboard RealD Letter

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