#Sports Illustrated publisher facing board revolt

The thinly traded public company that publishes Sports Illustrated and owns theStreet.com is facing a shareholder revolt as its stock continues to trade under $1 despite its recent push to run major media assets.

Two large shareholders filed preliminary proxy documents with the Securities and Exchange Commission last week to oust five of seven directors of The Maven, including chairman John Fichthorn, president Josh Jacobs and directors Rinku Sen, Peter Mills and David Bailey.

The revolt — led by boutique bank B. Riley and investment management company 180 Degree Capital — is aimed at putting in place a new board that better “reflects the ‘new’ Maven,” the documents say.

The Maven, previously known for running websites for media companies like Maxim and the History Channel, cut a deal last year to publish Sports Illustrated after Authentic Brands Group purchased the iconic magazine brand from Meredith for $110 million. A few months later it closed a deal to buy TheStreet.com, co-founded by Jim Cramer, for $16.5 million in cash with financial assistance from B. Riley.

“These acquisitions, largely financed by B. Riley and 180, have redefined the Company and its prospects,” the two shareholders said in a Nov. 30 press release before launching their proxy fight.

The shareholders need a majority of Maven shareholders to join them to overhaul the board. The Montclair, NJ-based 180 Degree owns an 8.8 percent stake in The Maven while the Los Angeles based B. Riley owns a 5 percent stake.

The board members under attack joined the company under former CEO James Heckman, who was replaced earlier this year amid controversy over major staff cuts at SI and the company’s hosting of a Blue Lives Matter website on its ad platform following the killing of George Floyd. 

Heckman remains involved with the company, working on acquisitions.

Levinsohn and Todd Sims, the current president of B. Riley Ventures, are also on the board.

The company has not filed financial disclosure documents in nearly three years and has therefore not held an annual meeting for over two years, which is why the shareholders have to mail proxy materials to shareholders to remove the board members.

Although Maven is a public company, it has been unable to trade on a public exchange due to its lack of financial statements.

Fitchhorn was recently removed from heading B. Riley Alternatives, a division of B. Riley Financial Corp., after he apparently resisted the call for the immediate resignation of himself and the other board members last month. He had been appointed chairman of The Maven two years ago as the company was buying small distressed assets including the Hub and Say Media with the backing of B. Riley. As of Nov. 30 this year, he was no longer an employee of B. Riley Alternatives, according to the SEC filing.

Jacobs, a past executive at Yahoo and Omnicon who once headed the now-defunct Glam Media, also came aboard in 2018.