A board game

Investors muscling for a proxy fight in the Zscaler drama despite a weak position

Another day, another draft. In our continued coverage of what seems to be a brewing proxy fight between activist shareholders and Zscaler management and board, we share with our readers… another draft of a letter to the board. It appears these investors would like to see majority of the board dismissed. Interestingly, they have not offered whom they would like to replace the so-called rubber-stamp caucus.

Despite a weak position, with Chaudhry controlling a 45% stake and other large investors holding the majority of the balance, activist investors continue to show fight. Not that these investors could ever be compared to a puppy, but they do seem undersized in this battle to disrupt the Zscaler board. The world can be very unfair when you are very rich.

The fight, as we reported previously, has been precipitated by a combination of a low stock price (down 30% just this year from its recent top), and a public dismissal of the reported $38 billion Broadcom offer to acquire Zscaler (dubb…