By Svea Herbst-Bayliss

BOSTON, (Reuters) – Donerail Group, an investment firm has canceled plans to purchase Turtle Beach (NASDAQ) Corp. Instead of seeking to oust its six board members and its CEO according to a letter obtained by Reuters.

Donerail holds a 7.4% share in Turtle Beach. It first called Turtle Beach to sell its gaming controllers and headsets. Then, Donerail became an offerder and offered as high as $36.50 per share.

According to the letter, “We have pulled our last offer but are 100% determined to turn around the Company on the public market for the benefit all shareholders.”

Donerail is a company that was founded by former Starboard Value executives. It stated it wants to enhance Turtle Beach’s capital allocation, corporate governance, and operations.

“Turtle Beach is currently plagued by governance, financial and strategic issues that need to be addressed by a more focused, open-minded and self-aware leadership team,” William Wyatt, one of Donerail’s founders, wrote in the letter to fellow shareholders.

Turtle Beach representatives were not available immediately for comment.

Wyatt stated that Turtle Beach remains a market leader in global gaming headsets, but the shares of the company have plunged over 60% since Juergen Stark became CEO almost ten years ago.

After years spent at Starboard (one of the most successful activist investor firms in the sector), Wyatt Calvert and Wes Calvert co-founded Donerail. Calvert served on the Starboard board that overtook the Darden Restaurants 12-person board (NYSE :).

Donerail indicated in the letter how it expected to provide a detailed operating program to other Turtle Beach investors.

Turtle Beach has seen its stock price drop by 30% over the past 12 months. This has reduced the company’s market capitalization to $340 million. Last Tuesday’s closing price of Turtle Beach shares was $21.07, down 11% from the previous day.