The cash dividend of $1.00 per share is classified for income tax purposes as follows: $0.687752 per share as nondividend distributions (return of capital) and $0.312248 per share as taxable qualified dividends on the 2011 Form 1099-Div.
Shareholders are encouraged to consult with their tax advisors regarding the tax treatment for the RealNetworks special dividend.
IRS Forms 8937 are available on this website in "Download Library" under Shareholder Tools.
In early-to-mid-2011, the board and management of the company undertook a thorough, top-to-bottom review of RealNetworks' current businesses and future growth opportunities. As part of this analysis, we believed that the company had excess cash relative to its future needs.
We believed the $1.00 special dividend strikes the appropriate balance between returning excess capital to shareholders and preserving our ability to invest and grow while maintaining financial stability.
When the total value of a dividend exceeds 25% of the market value of a company at announcement, Nasdaq delays the ex-dividend date until the day after the pay date. Due to the large relative size of the dividend, pursuant to Nasdaq rules, the ex-dividend date was August 24, 2011, the day after the pay date.
If you held shares through BNY Mellon as a registered holder, BNY Mellon would have mailed your check to you on or about August 23, 2011. If you held your shares through a bank or broker, you would have received payment from the bank or broker.
No, however, if you are a registered shareholder and you have moved from the location where you last received communications from RealNetworks, please be sure that our transfer agent has your new address. If your shares are held at a brokerage firm under street name, be certain that your broker has your latest contact information. Otherwise, no, you should not have had to do anything to receive the special dividend.
If you are a registered shareholder, you may contact RealNetworks' transfer agent: BNY Mellon Shareowner Services, PO Box 358015, Pittsburgh, PA 15252-8015, or 1-877-255-0997.
If you hold your shares through a broker, bank or other nominee, you should contact that institution directly for more information.
If you have questions regarding the tax consequences of the dividend, you should contact your personal tax advisor.
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