UNITED STATES
  
 
SECURITIES AND EXCHANGE
COMMISSION
  
 
Washington, D.C. 20549
  
 
Amendment No. 2
SCHEDULE 13D
  
 
Under the Securities Exchange Act of 1934
 
Mandalay Media, Inc.
(Name of Issuer)
 
Common Stock
(Title of Class of Securities)
 
562565101
 (CUSIP Number)
 
Barry I. Grossman, Esq.
Ellenoff Grossman & Schole, LLP
150 East 42nd Street, 11th Floor
New York, NY 10017
 
Allison Bennington, Esq.,
ValueAct Capital
435 Pacific Avenue, Fourth Floor
San Francisco, CA  94133
 
 (Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
 
April 16, 2010
(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 §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. o
 
Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 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). 
 
 
CUSIP No. 562565101

 
1.
Name of Reporting Person:
         
Jonathan Cresswell
     
     
 
2.
Check the Appropriate Box if a Member of a Group (See Instructions)
       
   
(a)
x
       
       
   
(b)
o
       
     
 
3.
SEC Use Only
     
     
 
4.
Source of Funds (See Instructions)
OO
     
     
 
5.
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     o
     
     
 
6.
Citizenship or Place of Organization
British
     
 
   
Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
 
7.
    
Sole Voting Power
1,770,287
    
  
8.
   
Shared Voting Power
0
     
   
9.
   
Sole Dispositive Power
1,770,287
         
  
10.
  
Shared Dispositive Power
0
     

 
11.
Aggregate Amount Beneficially Owned by Each Reporting Person
1,770,287
     
     
 
12.
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   o
     
     
 
13.
Percent of Class Represented by Amount in Row (11)
4.54%
     
     
 
14.
Type of Reporting Person (See Instructions)
IN
     
 

CUSIP No. 562565101

 
1.
Name of Reporting Person:
 
Nathaniel MacLeitch
     
     
 
2.
Check the Appropriate Box if a Member of a Group (See Instructions)
       
   
(a)
x
       
       
   
(b)
¨
       
     
 
3.
SEC Use Only
     
     
 
4.
Source of Funds (See Instructions)
OO
     
     
 
5.
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     ¨
     
     
 
6.
Citizenship or Place of Organization
United States
     
     
Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
7.
Sole Voting Power
1,770,287
   
   
8.
Shared Voting Power
0
   
   
9.
Sole Dispositive Power
1,770,287
   
   
10.
Shared Dispositive Power
0
     

 
11.
Aggregate Amount Beneficially Owned by Each Reporting Person
1,770,287
     
     
 
12.
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   ¨
     
     
 
13.
Percent of Class Represented by Amount in Row (11)
4.54%
     
     
 
14.
Type of Reporting Person (See Instructions)
IN
     
 
 
CUSIP No. 562565101

 
1.
Name of Reporting Person:
 
ValueAct SmallCap Master Fund, L.P.
     
     
 
2.
Check the Appropriate Box if a Member of a Group (See Instructions)
       
   
(a)
x
       
       
   
(b)
¨
       
     
 
3.
SEC Use Only
     
     
 
4.
Source of Funds (See Instructions)
WC
     
     
 
5.
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     ¨
     
     
 
6.
Citizenship or Place of Organization
British Virgin Islands
     
     
Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
7.
Sole Voting Power
 0
   
   
8.
Shared Voting Power
561,798*
   
   
9.
Sole Dispositive Power
0
   
   
10.
Shared Dispositive Power
561,798*
     

 
11.
Aggregate Amount Beneficially Owned by Each Reporting Person
561,798 *
     
     
 
12.
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   ¨
     
     
 
13.
Percent of Class Represented by Amount in Row (11)
1.4%
     
     
 
14.
Type of Reporting Person (See Instructions)
PN
     
 
* Excludes the Warrants described in Item 6 below.
 
 
CUSIP No. 562565101

 
1.
Name of Reporting Person:
          
VA SmallCap Partners, LLC
     
     
 
2.
Check the Appropriate Box if a Member of a Group (See Instructions)
     
   
(a)
x
       
       
   
(b)
¨
       
     
 
3.
SEC Use Only
     
     
 
4.
Source of Funds (See Instructions)
00
     
     
 
5.
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     ¨
     
     
 
6.
Citizenship or Place of Organization
Delaware
     
     
Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
7.
Sole Voting Power
0
   
   
8.
Shared Voting Power
561,798*
   
   
9.
Sole Dispositive Power
0
   
   
10.
Shared Dispositive Power
561,798*
     

 
11.
Aggregate Amount Beneficially Owned by Each Reporting Person
561,798*
     
     
 
12.
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   ¨
     
     
 
13.
Percent of Class Represented by Amount in Row (11)
1.4%
     
     
 
14.
Type of Reporting Person (See Instructions)
00 (LLC)
     
 
* Excludes the Warrants described in Item 6 below.
 
 
CUSIP No. 562565101

 
1.
Name of Reporting Person:
          
ValueAct SmallCap Management, L.P.
     
     
 
2.
Check the Appropriate Box if a Member of a Group (See Instructions)
       
   
(a)
x
       
       
   
(b)
¨
       
     
 
3.
SEC Use Only
     
     
 
4.
Source of Funds (See Instructions)
00
     
     
 
5.
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     ¨
     
     
 
6.
Citizenship or Place of Organization
Delaware
     
     
Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
7.
Sole Voting Power
0
   
   
8.
Shared Voting Power
561,798*
   
   
9.
Sole Dispositive Power
0
   
   
10.
Shared Dispositive Power
561,798*
     

 
11.
Aggregate Amount Beneficially Owned by Each Reporting Person
561,798*
     
     
 
12.
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   ¨
     
     
 
13.
Percent of Class Represented by Amount in Row (11)
1.4%
     
     
 
14.
Type of Reporting Person (See Instructions)
PN
     
 
* Excludes the Warrants described in Item 6 below.
 
 
CUSIP No. 562565101

 
1.
Name of Reporting Person:
    
ValueAct SmallCap Management, LLC
     
     
 
2.
Check the Appropriate Box if a Member of a Group (See Instructions)
       
   
(a)
x
       
       
   
(b)
o
       
     
 
3.
SEC Use Only
     
     
 
4.
Source of Funds (See Instructions)
00
     
     
 
5.
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     o
     
     
 
6.
Citizenship or Place of Organization
Delaware
     
     
Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
7.
Sole Voting Power
0
   
   
8.
Shared Voting Power
561,798*
   
   
9.
Sole Dispositive Power
0
   
   
10.
Shared Dispositive Power
561,798*
     

 
11.
Aggregate Amount Beneficially Owned by Each Reporting Person
561,798*
     
     
 
12.
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   o
     
     
 
13.
Percent of Class Represented by Amount in Row (11)
1.4%
     
     
 
14.
Type of Reporting Person (See Instructions)
00 (LLC)
     
 
* Excludes the Warrants described in Item 6 below.
 

CUSIP No. 562565101

 
1.
Name of Reporting Person:
            
David Lockwood
     
     
 
2.
Check the Appropriate Box if a Member of a Group (See Instructions)
       
   
(a)
x
       
       
   
(b)
¨
       
     
 
3.
SEC Use Only
     
     
 
4.
Source of Funds (See Instructions)
00
     
     
 
5.
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     ¨
     
     
 
6.
Citizenship or Place of Organization
Delaware
     
     
Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
7.
Sole Voting Power
0
   
   
8.
Shared Voting Power
561,798*
   
   
9.
Sole Dispositive Power
0
   
   
10.
Shared Dispositive Power
561,798*
     

 
11.
Aggregate Amount Beneficially Owned by Each Reporting Person
561,798*
     
     
 
12.
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   ¨
     
     
 
13.
Percent of Class Represented by Amount in Row (11)
1.4%
     
     
 
14.
Type of Reporting Person (See Instructions)
IN
     
 
* Excludes the Warrants described in Item 6 below.
 
 
Item 1. 
Security and Issuer
 
This Amendment No. 2 to Schedule 13D (this “Amendment No. 2”) relates to shares of common stock, $.0001 par value (the “Common Stock”), of Mandalay Media, Inc., a Delaware corporation (the “Issuer” or the “Company”), whose principal executive offices are located at 2121 Avenue of the Stars, Suite 2550, Los Angeles, CA, 90067.  This Amendment No. 2 amends and supplements the information contained in Items 1 and 4 of the Schedule 13D filed by Jonathan Cresswell and Nathaniel MacLeitch on April 1, 2010 (the “Schedule 13D”) and Amendment No. 1 to the Schedule 13D filed by Jonathan Cresswell, Nathaniel MacLeitch, ValueAct SmallCap Master Fund, LP. (“VAC”), VA SmallCap Partners, LLC, ValueAct SmallCap Manangement, L.P,  ValueAct SmallCap Manangement, LLC and David Lockwood on April 19, 2010.  All capitalized terms used herein but not defined herein have the meanings set forth in the Schedule 13D.   Except as amended by this Amendment No. 2, all information contained in the Schedule 13D is, after reasonable inquiry and to the best of the Reporting Persons’ knowledge and belief, true, complete and correct as of the date of this Amendment No. 2.

 
 
 
 
Item 4. 
Purpose of Transaction
 
Item 4 of the Schedule 13D is amended to read by replacing the fourth paragraph of Item 4 of the Schedule 13D, as amended by Amendment No. 1, as follows.
 
Pursuant to the Letter of Intent, the Reporting Persons and the Issuer agreed in principal and on a non-binding basis that the Issuer will sell 100% of the currently outstanding equity of AMV and assign certain contracts (collectively, the “Sale”) to a newly formed entity controlled by the Reporting Persons in exchange for (a) the cancellation of approximately $14.0 million of the aggregate amount of unpaid principal and accrued and unpaid interest of the VAC Note (resulting in a remaining outstanding balance of $6 million); (b) the cancellation of the AMV Note (the aggregate amount of unpaid principal and accrued and unpaid interest of which is presently approximately $6.3 million); (c) the cancellation of all warrants and Common Stock held by the Reporting Persons and (d) the termination of the Issuer’s obligations to pay certain earn-out payments under the Stock Purchase Agreement.
 
 
 

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.

DATE:         April 20, 2010
      
       
 
 /s/ Jonathan Creswell
 
Jonathan Creswell
       
 
/s/ Nathaniel MacLeitch
 
Nathaniel MacLeitch
       
 
ValueAct SmallCap Master Fund, L.P.,
 
By:
VA SmallCap Partners, LLC, Its General
   
Partner
       
 
By:
/s/ David Lockwood
   
Name:
David  Lockwood
   
Title:
Managing Member
       
 
VA SMALLCAP PARTNERS, LLC
       
 
By:
/s/ David Lockwood
   
Name:
David  Lockwood
   
Title:
Managing Member
       
 
ValueAct SmallCap Management, L.P.
 
By:
ValueAct SmallCap Management, LLC,
   
Its General Partner
       
 
By:
/s/ David Lockwood
   
Name:
David  Lockwood
   
Title:
Managing Member
       
 
ValueAct SmallCap Management, LLC
       
 
By:
/s/ David Lockwood
   
Name:
David  Lockwood
   
Title:
Managing Member
       
 
/s/ David Lockwood
 
David Lockwood
Attention:  Intentional misstatements or omissions of fact constitute Federal criminal violations
(See 18 U.S.C. 1001)