Shutterfly shareholder supports sale of company at 'fair' price

(Reuters) - Shutterfly Inc shareholders Marathon Partners Equity Management LLC and Mario Cibelli said on Friday that they would support the potential sale of the online photo-sharing service provider.

Cibelli is the managing member of Marathon Partners and has a 5.29 percent stake in Shutterfly. Marathon Partners has a 5.27 percent stake in the company.

In a letter to the Shutterfly board, Cibelli said he would be willing to support the sale, but "only at a price that fairly compensates the shareholders for the upside they would forgo."

Private equity firm Silver Lake is in advanced talks to buy Shutterfly for at least $2 billion (1.23 billion pounds), Reuters reported on Monday.

The company's shares closed at $49.77 on the Nasdaq on Thursday.

(Reporting By Subrat Patnaik in Bangalore; Editing by Simon Jennings)