May 16 (Reuters) - Turtle Beach Corp will give three seats on its board to Donerail Group as part of a settlement with the activist investment firm and other shareholders, the video game products maker said on Monday.
The San Diego, California-based company’s shares rose about 5% in trading before the bell.
As part of the deal, a strategic review committee will be formed to explore options including sale of the company. The panel would include two incumbent directors and two Donerail designees to oversee the process, the company said.
One current Turtle Beach director will retire from the board, it added.
Reuters had reported on Sunday that Donerail was close to reaching a settlement with Turtle Beach that would give the hedge fund representation on the board.
Donerail has for long criticized the maker of gaming headsets and controllers for operational missteps and has been pushing the company to sell itself. Turtle Beach has maintained it has been doing its best to find a buyer at an attractive price. (Reporting by Akash Sriram in Bengaluru; Editing by Shailesh Kuber)
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