3 weeks ago
Rockstar Energy founder builds Celsius stake, wants CEO role
There is a man named Russ Savage who started a company that makes an energy drink called Rockstar.
He sold that company in 2020 for a very big amount of money.
Now he has bought a small part of another energy drink company called Celsius.
He bought almost five out of every one hundred shares of Celsius.
Because he owns that part of the company, he wants to have a say in how it is run.
He thinks the people in charge of Celsius are not doing a good job and that investors no longer trust them.
He said he would even like to become the boss of Celsius himself.
Before this, he gave the company advice about costs and advertising, but the company mostly did not listen.
When people heard about what Russ Savage was doing, the price of Celsius shares went up.
The company has not said anything about it yet.
Rockstar Energy founder Russ Savage has amassed a nearly 5% stake in Celsius Holdings.
Savage controls more than 12 million Celsius shares, representing about 4.7% of the company.
He is calling for the replacement of Celsius's top leadership and says he is willing to take over as chief executive.
Savage says he informally advised Celsius on costs and marketing for more than a year, but his recommendations were largely ignored.
Celsius shares rose about 13% on Friday after the report, a day after tumbling 18% on quarterly results that missed Wall Street estimates.
- Who
- Russ Savage, founder of Rockstar Energy, and the leadership of Celsius Holdings.
- What
- Savage has built a nearly 5% stake in Celsius Holdings and is calling for the replacement of its top leadership, saying he is willing to become chief executive.
- Where
- Not specified in the article.
- When
- Reported by CNBC on Friday, August 7.
- Why
- Savage argues that Celsius's current leadership has lost credibility with investors and largely ignored his advice on costs and marketing.
Supporters of leadership change
Celsius leadership
CEO credibility
Supporters of leadership change
Russ Savage says Celsius's current leadership has lost credibility with investors and should be replaced, and he is willing to become chief executive himself.
Celsius leadership
Celsius has not publicly responded to the criticism and has made no announcement of any change to its leadership; it did not answer Reuters' request for comment.
Prior advice
Supporters of leadership change
Savage says he informally advised Celsius on costs and marketing for more than a year and his recommendations were largely ignored.
Celsius leadership
The company has not commented on Savage's account and has not indicated any public move to adopt his suggestions.
Key facts
- Companies involved
- Celsius Holdings and Rockstar Energy (founder Russ Savage)
- Stake acquired
- More than 12 million shares, about 4.7% of the company
- Savage's demand
- Replacement of top leadership; willing to take over as CEO
- Rockstar sale
- Sold to PepsiCo for $3.85 billion in 2020
- Stock reaction
- Up about 13% on Friday; down 18% the prior day after earnings missed estimates
- Report source
- CNBC, as reported by Reuters
- Company response
- No immediate response to Reuters request for comment
Quotes
Russ Savage
Founder and former CEO of Rockstar Energy, now a significant shareholder in Celsius
“Savage also told CNBC he would be willing to take over as chief executive of Celsius”
livemint.com
Sources
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