![]() ![]() One possible target is Autodesk's M&E (media & entertainment) division, which for many years has been doing poorly as sales fall year after year. In detail, activist actions involve selling off poorly performing divisions, halting unprofitable programs, and axing executives - getting rid of anything that distracts from the ADSK share value. ![]() (They will need help, as together the three control only 16% of shares they need a majority of 51%.) We know their plan: they want to make "changes to management, operations, cost structure, and strategic plans" to drive up the ADSK price. According to Bloomberg, the usual time-of-peace lasts a year, and so these six months are usually short.Īs of October 1, the three get to start swinging their battle axes, possibly with the assistance of other sympathetic directors on the board. As per the way things are done, they've agreed to do nothing until after 30 September. The new directors are three activist investors representing firms who each purchased 5% or more of ADSK shares. In popular parlance, 13D has come to refer to people who take over control of publicly-held companies and then make big changes.)Ī bland March-15th press release from Autodesk welcoming new directors to its board possibly marked the beginning of the end of the company as we know it. ![]() ("13D" is the SEC rule that requires those having acquired 5% or more of a company's shares to report the ownership publicly. Entire firms exist in the US whose sole purpose is to 13D other companies. The sole aim of activists is to increase the value of the company's shares and so profit greatly from their actions. Once on the board of directors, they can influence the direction of the company. ![]() Once investors have at least 5% of an American company's shares, they can get a seat on the board of directors. Activist investors want to maximize the profit of public companies, i.e., ones that sell shares to the public. ![]()
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