SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Rule 13d-101)
(Amendment No. 2)
INFORMATION TO BE INCLUDED IN STATEMENTS
FILED PURSUANT TO RULE 13d-1(a) AND AMENDMENTS
THERETO FILED PURSUANT TO RULE 13d-2(a)
Multimedia Games, Inc.
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(Name of Issuer)
Common Stock, par value $0.01 per share
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(Title of Class of Securities)
625-453-10-5
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(CUSIP Number)
Emanuel R. Pearlman
Liberation Investment Group LLC
330 Madison Ave, 6th Fl.
New York, NY 10017
(212) 832-5100
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(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
August 2, 2006
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), Rule 13d-1(f) or Rule 13d-1(g), check the
following box [ ].
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 13d-7(b) for other
parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
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CUSIP No. 625-453-10-5 SCHEDULE 13D Page 2 of 10
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1 NAME OF REPORTING PERSON
Liberation Investments L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)(a) [ ]
(b) [x]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (See Instructions)
WC
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d)
or 2(e)
[ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
0
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NUMBER OF 8 SHARED VOTING POWER
SHARES 1,543,418
BENEFICIALLY
OWNED BY ----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
PERSON
WITH ----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,543,418
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,543,418
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See
Instructions) [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.69%
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14 TYPE OF REPORTING PERSON (See Instructions)
PN
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CUSIP No. 625-453-10-5 SCHEDULE 13D Page 3 of 10
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1 NAME OF REPORTING PERSON
Liberation Investments Ltd.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)(a)[ ]
(b)[x]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (See Instructions)
WC
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d)
or 2(e)
[ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
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7 SOLE VOTING POWER
0
NUMBER OF ----------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 767,909
OWNED BY
EACH ----------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 0
WITH
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10 SHARED DISPOSITIVE POWER
767,909
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
767,909
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See
Instructions) [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.83%
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14 TYPE OF REPORTING PERSON (See Instructions)
CO
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CUSIP No. 625-453-10-5 SCHEDULE 13D Page 4 of 10
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1 NAME OF REPORTING PERSON
Liberation Investment Group LLC
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)(a) [ ]
(b) [x]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (See Instructions)
N/A
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d)
or 2(e)
[ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
0
NUMBER OF ----------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 2,311,327
OWNED BY
EACH ----------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 0
WITH
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,311,327
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,311,327
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See
Instructions) [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.52%
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14 TYPE OF REPORTING PERSON (See Instructions)
OO,IA
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CUSIP No. 625-453-10-5 SCHEDULE 13D Page 5 of 10
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1 NAME OF REPORTING PERSON
Emanuel R. Pearlman
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)(a) [ ]
(b) [x]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (See Instructions)
N/A
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d)
or 2(e)
[ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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7 SOLE VOTING POWER
0
NUMBER OF ----------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 2,311,327
OWNED BY
EACH ----------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 0
WITH
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10 SHARED DISPOSITIVE POWER
2,311,327
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,311,327
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See
Instructions) [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.52%
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14 TYPE OF REPORTING PERSON (See Instructions)
IN, HC
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CUSIP No. 625-453-10-5 SCHEDULE 13D Page 6 of 10
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INTRODUCTION
This Amendment No. 2 (this "Amendment") relates to the Schedule 13D filed
on behalf of (i) Liberation Investments, L.P., a Delaware limited partnership
("LILP"); (ii) Liberation Investments Ltd. ("LILtd"), a private offshore
investment corporation; (iii) Liberation Investment Group, LLC ("LIGLLC"), a
Delaware limited liability company and general partner of LILP and discretionary
investment adviser to LILtd; and (iv) Emanuel R. Pearlman, as Chief Executive
Officer and majority member of LIGLLC (collectively, the "Reporting Persons"),
with the Securities and Exchange Commission on May 30, 2006, as amended by
Amendment No. 1 filed on June 30, 2006 (the "Schedule 13D"), relating to shares
of common stock, $0.01 par value per share ("Common Stock"), of Multimedia
Games, Inc. (the "Company").
Items 3, 4 and 5 of the Schedule 13D are amended and supplemented as
follows:
Item 3. Source and Amount of Funds or Other Consideration.
The net investment cost (including commissions, if any) of the shares of
Common Stock beneficially owned by the Reporting Persons is $23,911,409.44 The
source of funds for this consideration was working capital of LILP and LILtd.
Item 4. Purpose of Transaction.
The Reporting Persons have previously advised the Company that it should
pursue one or more of several strategies to maximize shareholder value,
including but not limited to the following: (i) retain an experienced investment
bank immediately to evaluate all strategic alternatives, (ii) focus on a
transaction or restructuring to monetize the Company's participation
arrangements with Native American tribes in the State of Oklahoma and use the
proceeds to implement a substantial stock buyout or otherwise create a mechanism
to deliver maximum value to stockholders, and (iii) recapitalize the Company's
balance sheet to enable a significant stock repurchase. The Reporting Persons
have also advised the Company that it should expand the Board to include new
independent directors who have strong industry backgrounds and are sensitive to
shareholder concerns. Thus far, the Company has not demonstrated that it has
made progress toward implementing any of these or other strategies to maximize
shareholder value.
Unless the Company promptly articulates a strategy to maximize shareholder
value, the Reporting Persons intend to solicit shareholders to call a special
meeting of shareholders for the purpose of electing new directors to the Board.
If a special meeting is called, the Reporting Persons intend to nominate
individuals for election to the Board who will actively pursue strategies to
maximize shareholder value consistent with, but not limited to, those described
above. The Reporting Persons also intend to solicit proxies in support of the
election of such directors at the special meeting.
The Reporting Persons reserve the right to pursue all available
alternatives including, without limitation: communicating with other
shareholders of the Company regarding the Company, its business, prospects and
alternatives to maximize shareholder value; making one or more proposals for
adoption by shareholders (including proposals to improve the Company's
governance or to amend the Company's organizational documents); and proposing an
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CUSIP No. 625-453-10-5 SCHEDULE 13D Page 7 of 10
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extraordinary corporate transaction, such as a merger, reorganization,
recapitalization or liquidation, involving the Company or any of its
subsidiaries, or a sale or transfer of a material amount of assets of the
Company or any of its subsidiaries, which transaction may involve the Reporting
Persons or third parties unrelated to the Reporting Persons. The Reporting
Persons may also purchase additional Common Stock in the open market, in
privately negotiated transactions or otherwise; alone or in conjunction with
others, seek to acquire, the Company or substantially all of its assets or
outstanding securities, including by merger, tender offer or stock or asset
purchase; or sell all or a portion of the Common Stock now owned or hereafter
acquired by them. The Reporting Persons may also urge other persons, including,
without limitation, other stockholders of the Company, to take or pursue any of
the foregoing.
The Reporting Persons reserve the right to change their plans or
intentions and to take any and all actions that they may deem appropriate to
maximize the value of their investment in the Company in light of their general
investment policies, market conditions, subsequent developments affecting the
Company and the general business and future prospects of the Company.
Except as set forth above, the Reporting Persons do not have any current
intention, plan or proposal with respect to: (a) the acquisition by any person
of additional securities of the Company, or the disposition of securities of the
Company; (b) an extraordinary corporate transaction, such as a merger,
reorganization or liquidation, involving the Company or any of its subsidiaries;
(c) a sale or transfer of a material amount of assets of the Company or any of
its subsidiaries; (d) any change in the present board of directors or management
of the Company, including any plans or proposals to change the number or term of
directors or to fill any existing vacancies on the board; (e) any material
change in the present capitalization or dividend policy of the Company; (f) any
other material change in the Company's business or corporate structure; (g)
changes in the Company's charter, bylaws or instruments corresponding thereto or
other actions which may impede the acquisition of control of the Company by any
person; (h) causing a class of securities of the Company to be delisted from a
national securities exchange, if any, or cease to be authorized to be quoted in
an inter-dealer quotation system of a registered national securities
association; (i) a class of equity securities of the Company becoming eligible
for termination of a registration pursuant to Section 12(g)(4) of the Act; or
(j) any action similar to any of those enumerated above.
Item 5. Interest in Securities of the Issuer.
(1) As of the date hereof, the Reporting Persons have the following
interest in the securities of the Company:
(i) LILP beneficially owns 1,543,418 shares of Common Stock and is the
beneficial owner of 5.69% of the Common Stock.
(ii) LILtd beneficially owns 767,909 shares of Common Stock and is the
beneficial owner of 2.83% of the Common Stock.
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CUSIP No. 625-453-10-5 SCHEDULE 13D Page 8 of 10
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(iii) LIGLLC, as the sole general partner of LILP and the sole investment
advisor to LILtd, beneficially owns 2,311,327 shares of Common Stock
and is the beneficial owner of 8.52% of the Common Stock.
(iv) Mr. Pearlman, as the Chief Executive Officer and majority member of
LIGLLC, beneficially owns 2,311,327 shares of Common Stock and is
the beneficial owner of 8.52% of the Common Stock.
The Reporting Persons in the aggregate may be deemed to own an aggregate of
8.52% of the Common Stock.
(2) The table below sets forth for each Reporting Person, the numbers of
shares of Common Stock for which there is sole power to vote or to direct the
vote, shared power to vote or direct the vote, or sole or shared power to
dispose or to direct the disposition.
LILP LILTD LIGLLC Mr.
---- ----- ------ ---
Pearlman
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Sole Power to 0 0 0 0
Vote/ Direct Vote
Shared Power to 1,543,418 767,909 2,311,327 2,311,327
Vote/ Direct Vote
Sole Power to 0 0 0 0
Dispose/ Direct
Disposition
Shared Power to 1,543,418 767,909 2,311,327 2,311,327
Dispose/ Direct
Disposition
(3) There have been no purchases or sales of the Company's stock by the
Reporting Persons within the last sixty days, except that:
(i) On June 16, 2006, (i) LILP purchased 34,000 shares of Common
Stock on the open market, at a price of $9.6000 per share, and
(ii) LILtd purchased 6,000 shares of Common Stock on the open
market, at a price of $9.6000 per share.
(ii) On June 27, 2006, (i) LILP purchased 25,500 shares of Common
Stock on the open market, at a price of $9.6149 per share, and
(ii) LILtd purchased 4,500 shares of Common Stock on the open
market, at a price of $9.6149 per share.
(iii) On July 14, 2006, LILtd purchased 100,000 shares of Common
Stock on the open market, at a price of $9.9975 per share.
(iv) On July 17, 2006, LILtd purchased 50,000 shares of Common
Stock on the open market, at a price of $9.9938 per share.
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CUSIP No. 625-453-10-5 SCHEDULE 13D Page 9 of 10
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(v) On July 18, 2006, LILtd purchased 50,000 shares of Common
Stock on the open market, at a price of $9.9326 per share.
(vi) On July 25, 2006, LILtd purchased 60,000 shares of Common
Stock on the open market, at a price of $9.8768 per share.
(vii) On August 2, 2006, LILtd purchased 25,000 shares of Common
Stock on the open market, at a price of $9.1315 per share.
No person other than each respective owner referred to herein of Common Stock is
known to have the right to receive or the power to direct the receipt of
dividends from or the proceeds from the sale of such Common Stock.
(4) Not applicable.
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CUSIP No. 625-453-10-5 SCHEDULE 13D Page 10 of 10
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief,
I certify that the information set forth in this statement is true, complete and
correct.
Dated: August 7, 2006
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LIBERATION INVESTMENTS, L.P.
By: Liberation Investment Group LLC, general partner
By: /s/ Emanuel R. Pearlman
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Emanuel R. Pearlman
Chief Executive Officer
LIBERATION INVESTMENTS LTD.
By: /s/ Emanuel R. Pearlman
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Emanuel R. Pearlman
Director
LIBERATION INVESTMENT GROUP LLC
By: /s/ Emanuel R. Pearlman
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Emanuel R. Pearlman
Chief Executive Officer
Emanuel R. Pearlman
/s/ Emanuel R. Pearlman
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