On July 20, 2012, PEEK Investments LLC commenced the unsolicited tender offer to purchase all outstanding shares of LookSmart, Ltd. for $1.00 per share, net to the seller in cash, without interest and less any applicable withholding taxes. On January 14, 2013, PEEK consummated the offer by purchasing approximately 8,447,647 shares of the company, which, together with the shares owned by PEEK's affiliates as of such date, represented approximately 64% of the total outstanding shares of the company. On January 14, 2013, in connection with the closing of the offer, Timothy Wright and Anthony Castagna resigned as directors of the company.

On the same date, the board of directors of the company increased the size of the board of directors to seven and appointed PEEK nominees Christian Chan, Mike Onghai, Paul Pelosi, Jr. and Thorsten Weigl to serve as directors of the company. Each of these newly appointed directors was nominated by PEEK and appointed pursuant to the terms of the offer, which was previously disclosed on Schedule 14D-9, as amended, initially filed by the company with the SEC on August 2, 2012. On January 16, 2013, Christopher O'Hara, the company's chief revenue officer, submitted his resignation to the company, effective January 18, 2013.