Turtle Beach (HEAR) Issues Update on Review of Strategic Alternatives

Leading gaming accessory maker Turtle Beach Corporation (Nasdaq: HEAR) (“Turtle Beach” or the “Company”) today provided an update regarding its previously announced review of strategic alternatives.

Over the course of the review, the Board’s Strategic Committee (the “Strategic Committee”), in consultation with its financial and legal advisors, engaged in a proactive process to evaluate strategic opportunities, focused on a sale of the Company. As part of the review, the Strategic Committee, through its financial advisor, Bank of America, contacted and held discussions with 109 parties, which included strategic and financial parties. The Strategic Committee received robust interest from multiple strategic parties, however, due to a number of factors including current market dynamics, the challenging financing environment, inflation affecting consumer discretionary spending and ongoing integrations of prior acquisitions, these parties were ultimately not in a position to move forward with an acquisition at this time. Furthermore, while several financial parties submitted preliminary indications of interest to acquire the Company, in light of factors including current market dynamics and the challenging financing environment, those parties declined to move forward in the process. Therefore, the Strategic Committee has determined to conclude the proactive outreach to potential buyers. Nevertheless, the Strategic Committee will continue to evaluate strategic opportunities consistent with the Strategic Committee’s charter.

“Through the duration of our extensive process, the Board and Strategic Committee were singularly focused on maximizing value for Turtle Beach stockholders,” said Mr. William Keitel, Chair of the Strategic Committee. “We have conducted a robust and exhaustive review of strategic alternatives, focused on a potential sale of the Company, contacting over 100 potential acquirors, but these parties were not able to make a proposal that would deliver value to our stockholders due to a convergence of external factors, including macro-economic challenges related to supply chain constraints, inflationary concerns and a challenging consumer spending environment. As a result, we ultimately determined to stop proactive outreach to potential buyers but will continue to consider opportunities consistent with the Strategic Committee’s charter. We continue to believe in the strong prospects for Turtle Beach in the large gaming market in which we operate and we remain focused on driving value for stockholders as a standalone business.”

Brian Stech, a member of the Board’s Strategic Committee, added, “Turtle Beach is an award-winning pioneer and industry leader with strong market share and brand awareness. My time on the Board has given me confidence that the Company remains well positioned for success and value creation once market conditions improve. I look forward to continuing to work with management and the rest of the Board to oversee the continued execution of the Company’s strategic plan.”

Second Quarter 2022 Financial Results

In a separate press release, Turtle Beach today announced its second quarter 2022 financial results, which are available on the “Investor Relations” section of the Turtle Beach website. The Company will hold a conference call today, August 8, 2022, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss its second quarter 2022 results.

Advisors

BofA Securities, Inc. is serving as financial advisor to Turtle Beach and Orrick, Herrington & Sutcliffe LLP are serving as legal counsel to Turtle Beach.

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