Management and Board Shake Up at KIT Digital Sends Stock Down 22.3 Percent

Posted by Joe Zaller
Mar 23 2012

There were some major changes to the management and board of directors at IPTV video delivery specialist KIT Digital, including the replacement of the company’s CEO and four resignations from its board of directors.

The company said that CEO Kaleil Isaza Tuzman will step down from his position on March 31, 2012 and assume the role of chairman.  He will be replaced as CEO on an interim basis by Barak Bar-Cohen, KIT’s current chief administrative officer.

KIT says it will conduct a search for a permanent CEO.

The company also disclosed in a filing with securities regulators that board member Santo Politi, who chaired the KIT Digital’s compensation committee and served as a member of its M&A committee, resigned from the KIT Digital board “because of differences of opinion with other members of the Board over issues related to the Company’s operations, policies and management.”

KIT also announced the resignation from the company’s board of directors by three members of its management team: Gavin Campion (KIT’s President), Robin Smyth (KIT’s CFO), and Chris Williams (KIT’s CTO).  The company said that Campion, Smyth and Williams “submitted their resignations in order to support the company’s efforts to rebalance its board towards non-management members.  All three will remain in their positions as officers of the company.

For his part, Tuzman said that the move had been planned and will enable him to focus on strategic transactions. “The shift to full-time chairman is a step I have been contemplating for some time. The strategic transaction process, which is underway at the direction of the board’s Special Transaction Committee, is at a pace that requires my dedicated focus and energy, separate to the day-to-day running of the company and investor relations responsibilities. By moving forward today with Barak as our interim CEO, we have built in some structural flexibility over the coming months as we assess strategic options.”

Investors were unimpressed with the news.  KIT’s stock traded down as much as 26% during the day trading and closed down 22.3%, prompting a series of articles about KIT’s performance, including this overview from Yahoo Finance, which highlights some previous drama at the company.

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Related Content:

Press Release: KIT digital Implements Management and Board Changes, Aligns Company for Strategic Opportunities and Operational Success

Kit Digital 8-K filing

Yahoo Finance Article: KIT digital Sinks More Than 20% After Management Shakeup

Kit digital Says its Revenue Doubled in 2011, Forms Strategic Transaction Committee

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