Harmonic shares jumped 9% the day after the video and cable tech company inked a cooperation agreement with a big shareholder that left some industry watchers scratching their heads about what it all means.
The agreement itself was pretty basic. Scopia Capital Management, an investor that has been buying Harmonic shares in recent years and now holds a stake of 9.8% in the supplier, now has the right to appoint two directors to Harmonic's board of directors during the next year. Scopia has also pledged to support Harmonic's slate of nominees at the upcoming 2021 annual meeting "and abide by customary standstill and other provisions."