LOS ANGELES, Dec. 6, 2012 (GLOBE NEWSWIRE) -- Alex Meruelo today delivered the following letter to the board of directors of Digital Generation, Inc. (Nasdaq:DGIT):
"I acknowledge and appreciate the press release issued by Digital Generation on November 30, 2012 in response to my request for greater transparency regarding the Company's existing strategic alternatives process.
As Digital Generation's largest shareholder, I have supported the existing process and welcomed a timely sale of the Company at a fair price to the Company's Executive Chairman or any other buyer. I continue to believe that the Company has tremendous value and have urged the board to take action to capitalize on the current level of interest in the Company and diligently consider and pursue the best available opportunities. Although I have been disappointed by the delays and lack of communication on the part of the Company, I have continued to support the process and attempt to work with the Company to preserve, create, and realize value for shareholders.
I am committed to monitoring my investment in the Company on a continuing basis and otherwise taking action as I deem appropriate in connection with my interest in the Company.
I expect the Company to be accountable to its shareholders as the owners of the Company and intend to hold the board and management directly responsible for maximizing value for all shareholders. I also expect the Company to demonstrate a conscious regard for shareholders in connection with the existing process, including by providing more timely, regular, and meaningful updates, as appropriate, until the process is completed.
If the Company fails to complete the process in a timely manner or otherwise fails to maximize value for all shareholders, I plan to make director nominations and submit shareholder proposals and conduct a proxy solicitation contest, as appropriate for the protection of shareholders."
About the Meruelo Parties
Meruelo Investment Partners LLC acts as an investment adviser or manager to other persons and accounts and may be deemed to beneficially own securities owned or held by or for the account or benefit of such persons and accounts. The principal business of Meruelo Investment Partners is serving as an investment adviser or manager to other persons and accounts.
Alex Meruelo is the Chief Executive Officer of Meruelo Investment Partners and may be deemed to control, and beneficially own securities owned or held by, Meruelo Investment Partners. The present principal occupation of Mr. Meruelo is serving as the principal of the Meruelo Group, which includes affiliated companies with significant interests in real estate management and development, utility construction, hospitality, food services (manufacturing, distribution and restaurant operations), and television broadcast media.
About the Proxy Solicitation
We intend to file a proxy statement and other soliciting materials with the SEC and use the materials to solicit proxies from shareholders of Digital Generation in connection with a meeting of shareholders of Digital Generation. Security holders are advised to read the proxy statement and other materials (when and if they become available) because they will contain important information, including with respect to the proxy solicitation and the participants in the solicitation. Security holders may obtain the proxy statement and other material (when and if they become available) for free at the SEC's web site at http://www.sec.gov or from the participants using the contact information provided herein or in the materials.
We intend to file this press release with the SEC on December 6, 2012 as soliciting material on Schedule 14A and include information in Exhibit 1 to the Schedule 14A with respect to the identity of the participants in the solicitation and a description of their direct or indirect interests, by security holdings or otherwise. Security holders may obtain the information for free at http://www.sec.gov or by contacting us using the contact information provided herein or in the materials.
This press release contains forward-looking statements that are subject to factors that could cause actual results to differ materially from expected results, including assumptions that may not be correct or accurate due to risks related to Digital Generation and other parties, circumstances, and conditions we cannot control or predict, the inherent uncertainty of future events, and other factors that may cause us to change our plans.
CONTACT: Xavier A. Gutierrez President and Chief Investment Officer Meruelo Group (562) 745-2339