Averting Proxy Wars: 10 Companies Opting for Activist Investor Settlements

6. Viasat, Inc. (NASDAQ:VSAT)

Activist Investor: Carronade Capital Management

Number of Hedge Fund Holders: 50

Viasat, Inc. (NASDAQ:VSAT) has seen its fortunes turn positive after reaching a cooperation agreement with activist investor Carronade Capital Management in May. The stock has nearly doubled after a 90%+ year-to-date rally, dwarfing the 25% gain for the Insider Monkey Billionaire Index.

This outperformance contrasts sharply with months of pressure from the investment firm to unlock shareholder value through strategic changes. Carronade had been pressing the company to separate its Defense and Advanced Technologies (DAT) business from its satellite communications operations. Explore Viasat cash generation prospects.

The activist argued that separating the businesses could unlock as much as $11 billion in shareholder value, claiming the market was undervaluing Viasat, Inc.’s defense operations. Additionally, it pushed management to accelerate its review of strategic alternatives and improve capital allocation.

The agreement represents a negotiated resolution without a prolonged proxy fight. By securing two additional directors with technology, financial, and strategic transaction experience, Viasat, Inc. strengthened its strategic review process while giving the activist investor a greater voice in board-level oversight.