Pleasant Lake Partners, after acquiring a 10% stake, urges Funko to sell the company

Investing.com - According to regulatory filings submitted on Thursday, Pleasant Lake Partners disclosed that it holds approximately 10% of the toy manufacturer Funko Inc. (NASDAQ: FNKO) and stated that the company should consider strategic alternatives, including a potential sale.

The New York-based hedge fund said it would communicate with Funko’s board of directors and management about ways to enhance shareholder value. Pleasant Lake Partners advocates for an immediate and comprehensive exploration of alternatives for strategic and financial buyers.

Following the disclosure, Funko’s stock rose 3.5% in pre-market trading on Friday. Prior to this activist investor’s involvement being announced, Funko’s stock had declined nearly 75% over the past year.

In the filing, Pleasant Lake Partners stated that it believes these shares are undervalued at purchase and represent an attractive investment opportunity. The firm noted that with experience in completing privatization transactions, including the acquisition of L’Occitane in October 2024 and Tile Shop Holdings in December 2025, it has a unique advantage in participating in sale processes.

The hedge fund indicated it plans to directly communicate its views to the board and urges the board to act swiftly to serve the best interests of all shareholders. Pleasant Lake Partners said it may buy additional shares, sell some or all of its holdings, or propose changes to the capital structure, ownership structure, or board composition to Funko.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.