People Shareholder Arkhouse Proposes $750M Dutch Tender, Distribution Of Contingent Value Rights And Monetization Of Company's HQ Real Estate

Dutch Tender

We can think of few better uses of a company’s capital than purchasing shares at a discount to intrinsic value. The wider the discount, the more compelling the math. Specifically, as Exhibit 1 below illustrates, we believe the intrinsic value, or net asset value (NAV), of People approximates $72 per share based on the current (and in our view, extremely depressed) share price of MGM. Valuing MGM at the previously-proposed acquisition price of $48.30 per share increases estimated NAV to approximately $86 per share. These values represent approximately 72% and 104% upside, respectively, to People’s current stock price.

People should offer to repurchase at least $750 million in stock through a Dutch auction tender, with a price range set at a level sufficient to complete the full $750 million repurchase. This tender would signal conviction at scale, efficiently clear sellers, and concentrate the shareholder base among those who understand the assets they own. The Dutch tender completed by Scholastic Corporation earlier this year provides a relevant precedent: another historically undervalued media company with a dual-class share structure and valuable headquarters real estate taking concrete action to return capital and increase its share price to fair value.

Contingent Value Rights (CVRs)

We believe the Company should create and distribute Contingent Value Rights (CVRs) to shareholders which would provide shareholders with the right to receive their proportionate net proceeds that may be recovered by the Company in connection with People Inc.’s legal action against Google/Alphabet.3 Our independent assessment supports management’s view that the potential recovery could be significant. As management stated on the fourth quarter 2025 earnings conference call, "We seek to recover hundreds of millions of dollars in damages," and then stated on the third quarter 2026 earnings conference call, "We believe we have substantial claims, among the largest claims out there." We note that in a similar case of Gannett (USA Today) vs Google/Alphabet, Gannett's expert has estimated damages of approximately $900 million, which would be subject to statutory trebling under the Clayton Act if proven at trial.

Sale of HQ Real Estate

We are highly confident, based on our extensive experience investing in the real estate space and previous indications of interest received from prospective buyers, that parties would be interested in pursuing an acquisition of the Company’s headquarters real estate in Chelsea for values approaching $300 million, which is meaningfully above People’s estimated $230 million purchase price of its building and underlying land.

We reiterate that People’s poor share price performance does not diminish our respect for the strategic vision you have demonstrated over decades. Rather, we view the Company’s egregious undervaluation as a damning indictment of the current state of the public equity markets. Nevertheless, shareholders bear the consequences of that disconnect, and the Board has the means and responsibility to act now. We therefore call on the full Board, under your leadership as Chairman, to take immediate, decisive action, including the measures outlined above, to close the gap between People’s share price and its intrinsic value.

We continue to evaluate additional avenues to unlock shareholder value, including a potential transaction involving the Company. The measures outlined above would preserve flexibility for such a transaction, while repurchasing shares below intrinsic value would increase the value per share attributable to remaining shareholders. We believe these proposals are straightforward and immediately actionable, and we remain available to discuss their implementation.

Sincerely,

Gavriel Kahane

Managing Partner

cc: The Board of Directors