To comply with a court order handed down Thursday, Youbet.com will delay its annual shareholders meeting so it can provide information on the ramifications of a majority buyout by Gemstar Inc., parent company of Television Games Network.
Youbet was ordered by the court to provide shareholders with information on the consequences, both positive and negative, of a takeover by Gemstar. TVG's parent company is a minority shareholder in Youbet with an option to buy a majority by May 2004.
No new date was set for the meeting, but a press release from the company said proxies for the meeting would be reissued. However, Youbet officials noted the same provisions that initially led to the court action by TVG will still be contained.
One proposal calls for staggered elections of directors and another for supermajorities for approval of changes in Youbet's by-laws. TVG has balked at the proposal because it could buy a majority interest in Youbet and not have enough seats on the board to make changes.
Youbet chief counsel Victor Gallo said the company will abide by the court order and will move on.
"We know of TVG's extraordinary appetite for litigation and we have no interest in feeding it any more than necessary at the expense of our shareholders," Gallo said.