Here's Why Turtle Beach Shares Are Trading Lower Premarket - Turtle Beach (NASDAQ:HEAR)

Turtle Beach Corporation HEAR weighed a sales process as it considers ways to maximize value for shareholders.
Some potential buyers broke off discussions due to Turtle Beach's dependence on console gaming headsets and cyclicality.
Speculation has mounted about Turtle Beach's prospects due to its boardroom battle with hedge fund Donerail Group trying to oust all six Turtle Beach board members, including CEO Juergen Stark.
Turtle Beach signed ten (non-disclosure agreements) and held nine management meetings, Reuters notes.
In the last five years, the gaming equipment company engaged with potential buyers on three separate occasions and hired Bank of America Corporation BAC in 2021 to spearhead the process.
Turtle Beach reported first-quarter FY21 revenue of $46.7 million, down 49.9% year-on-year, beating the consensus of $43.4 million.
"This is due to the lack of stimulus spending that benefited the first half of 2021, as well as consumer caution on discretionary spending considering inflationary and other macroeconomic concerns," Chair and CEO Juergen Stark said.
Non-GAAP EPS loss of $(0.39) beat the consensus loss of $(0.52).
Turtle Beach continues to target roughly $100 million in revenue outside its console gaming headset business in 2022, building off the expansion of its PC accessory portfolio and entry into gaming controllers, flight simulation, and microphones in 2021.
Price Action: HEAR shares traded lower by 19.9% at $14.81 in the premarket on the last check Friday.

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