The Street, the financial news company started by Jim Cramer, has agreed to sell its last remaining piece to publicly traded The Maven for $16.5 million.
It is unclear whether Cramer, the high-profile anchor of CNBC’s “Mad Money,” will stay with the firm under the deal. He’s been pulling in a hefty pay package in the $3 million-a-year range, a painful bite for a financial site that has struggled to find its footing in the viciously competitive market for business news.
Sources said that under his contract, he has seven days after a final pact is signed whether he will opt in and stay with the operation under new owners.
The Maven is headed by digital entrepreneur Jim Heckman, a founder of Scout and former interim CEO of Yahoo. It is primarily a digital distribution and tech platform that is used by 270 small to mid-sized brands including History, Maxim, Yoga Journal, Ski magazine and others that combined reach about 100 million consumers.
Heckman said the Street is expected to form the core of a financial vertical.
“This is an important milestone for Maven’s growth strategy,” said Heckman. “The entire team at the Street have built a powerful and important voice delivering market-leading financial insights.”
The Street has been selling itself in pieces over the past year and shedding staff as the process unfolded. It sold off RateWatch in June 2018 followed by the sale of The Deal and BoardEx earlier this year.
“This is a good outcome for The Street’s shareholders,” said Eric Lundberg, CEO and chief financial officer of The Street. “For over a year we have had a strategic committee comprised entirely independent directors tasked with evaluating alternatives for the business with the assistance of a financial advisor.”
The deal has been approved by the board of both companies but still has to be ratified by shareholders.
The deal calls for a subsidiary of The Maven to acquire all the outstanding common shares of The Street in a deal funded through debt financing from B. Riley Financial Inc.
The deal is expected to close in the third quarter.
Moelis & Co. served as financial advisor to the Street. Lake Street Capital Markets rendered a fairness opinion with respect to the purchase price, the company said.
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