Deal boosts TheStreet shares about 7% in early morning trading
TheStreet, the stock market news website co-founded by Jim Cramer, agreed to be acquired by TheMaven Inc., a Seattle-based digital media company, for $16.5 million in cash, the site announced on Wednesday morning.
It’s unclear if Cramer, who has become a household name hosting “Mad Money” on CNBC for more than a decade, will remain involved with the site. When reached for comment, TheStreet CEO and CFO Eric Lundberg said “it’s TBD,” or to be determined, if Cramer will stay connected to the site in any official capacity.
The deal will pay between $6.19 and $6.47 per share to TheStreet shareholders, representing about a 9% to 14% premium on where the company closed on Tuesday. The buyout boosted the site’s shares nearly 7% in early trading on Wednesday, hitting $6.06 per share.
“This is a good outcome for TheStreet’s shareholders,” Lundberg said in a statement.
“For over a year we have had a strategic committee comprised entirely of independent directors tasked with evaluating strategic alternatives for the business with the assistance of a financial advisor. The first step was the successful sale of our RateWatch business in June 2018, followed by the sale of TheDeal and BoardEx which closed earlier this year, followed by a substantial distribution to our stockholders from the proceeds of those sales at the end of April,” he continued. “After taking into account the ongoing development needs and operating costs of the remaining consumer business as a stand-alone public company, we believe this agreement represents the best way to maximize value to TheStreet shareholders.”
The buyout comes a little more than a year after the website’s stock price fell sharply from above $20 per share.
The website was founded in 1996 by Cramer and publisher Marty Peretz. Cramer tweeted several times on Wednesday morning but did not address the sale.