Tag Archives: TheStreet.com
by Chris Roush
TheStreet.com announced Tuesday it has entered into a new four-year agreement with Jim Cramer, the company’s co-founder and markets contributor.
This agreement is one year longer than his previous contract, which was set to expire in December 2013. Cramer will continue his role as chief markets commentator for TheStreet.com, continue trading his multi-million dollar Charitable Trust portfolio at Action Alerts Plus and publishing his blog three times daily on Real Money.
The new agreement is effective Dec. 1, 2013, and will expire on Dec. 31, 2017.
“The Company greatly benefits from the many contributions of our founder, Jim Cramer, the most recognized personality in financial media and a true market savant,” said Elisabeth DeMarse, chairman, president and CEO of TheStreet, in a statement. “Jim Cramer’s continued commitment to TheStreet and eagerness to renew his contract for a longer period than the last agreement is strong validation of the strategic direction of the Company. Harnessing Jim’s digital rights enables our Premium Subscription division to drive greater revenue, expand our video offerings, and launch new products to support organic growth.”
by Chris Roush
Salmon writes, “The companies are complementary in many ways. Forbes has a big ad-sales base, as well as a storied brand name, a large events business, and a valuable network of thousands of editorial contributors; it is also furthest along in terms of building a strong native-advertising franchise. Business Insider has growth, attitude, aggression, speed, and by far the most web-native newsroom in financial media. It knows what people want to read, and it is extremely good at providing exactly that. TheStreet, meanwhile, has an enviable list of stock-market investors who are willing to spend serious amounts of money on newsletter subscriptions; it also has a very sophisticated video setup, and last year spent $6 million buying The Deal, which reaches pretty much everybody who matters in the New York financial industry. And Seeking Alpha has managed to build up an extraordinary base of reader-contributors, who between them provide some of the most timely and sophisticated stock-market analysis on the web.
“The big question is, of course: who has $700 million to spend on such a roll-up, as well as the managerial and technological nous to get them all to play nicely together? The facile answer is: anybody who can afford to spend $400 million on Forbes alone can afford to spend $700 million on something which is much more likely to make a real impact. But still, we’re talking about real money here. Which means that one company in particular springs to mind as the place which could put a deal like this together: Yahoo.
“Yahoo already owns Yahoo Finance, which is by far the most valuable financial property on the web. (It’s also, for my money, the single highest-quality product that Yahoo owns.) Yahoo is also in acquire-and-expand mode right now, buying up anything with buzz. $700 million is less than two-thirds what Marissa Mayer paid for Tumblr; she has $1.8 billion in cash alone, and might well come into even more, depending on what happens with Alibaba. On top of that, Yahoo Finance could provide the kind of readership and quality data services that all of the rolled-up companies would kill for: it has the makings of a great platform on which to build a truly formidable financial-media competitor.”
Read more here.
by Chris Roush
TheStreet.com is seeking a finance, technology and current events news writer to provide real-time coverage to a sophisticated audience.
The news writer will be responsible for sifting through a deluge of financial information generated each day by corporations, lenders, government agencies, asset managers, debt/equity analysts and other financial news agencies to cull out items of interest for our experienced readers.
The news writer will work closely with TheStreet’s newsroom personnel to identify content relevant to the target audience and produce original content through analysis or synthesis of existing stories. The result will be a continuously updated, tightly focused concise news content that will be pushed to TheStreet’s audience throughout every trading day.
• Bachelor’s degree in a relevant field
• Excellent writing, grammar and analytic skills
• Ability to very quickly churn out error-free content
• Knowledge of financial markets
• Be a quick reader and writer, with the ability to churn out 10-15 short-form articles/day
• Supportive attitude and the ability to function well in a team environment
To apply: Please send your resume, writing samples and salary requirements with “Digital Journalist” in the subject line to firstname.lastname@example.org.
by Chris Roush
Here are excerpts from the Friday conference call by Elisabeth DeMarse, the CEO of TheStreet.com, discussing its earnings:
Now that we’re beyond TheStreet’s reorganization period we anticipate that the company’s financial results will become more predictable, stronger and more clearly indicative of the value that exist within TheStreet. We are eagerly looking forward to a new stage of growth for TheStreet one that built on great product momentum, a strengthen team, and improved business model and clear strategic direction.
While many of our competitors have struggled with the shifting sands of online advertising, we have refined our free site as an acquisition funnel for our subscription newsletters. It turns out TheStreet.com is a great way to introduce our lucrative subscription products to more than 10 million people who visit us each month. Remember, we have an asymmetrical competitive advantage because we have dual monetization of the audience coming to our flagship free site TheStreet.com. One of the biggest achievements since I arrived is our ability to generate leads from our subscription business from TheStreet.com. In 2011, 8% of our subscribers were acquired via the free site. Today that percentage is 33%.
People who follow the markets want to know as much as they can, as quickly as they can so they can react and make decisions on their investments. The people are coming to TheStreet TV for financial news and investing ideas are similar to the audience’s sports fanatics they spend time on ESPN, they want analysis immediately. The online and video opportunity is pretty compelling. TheStreet TV produces 15 to 20 digital videos every trading day (indiscernible) market updates, interviews and stories of interest to investors. Our Wall Street location makes it very easy for CEOs to visit our studios when they visit the New York Stock Exchange. Our Virtual Studio allows us to prove HD quality content at a low cost.
Video is a great opportunity to take our brands The Deal, TheStreet and MainStreet and the trust that our leaders place at us and bring it to the video space building on the type of information TheStreet is already known for accurate, fast, actionable investment information and ideas. Also advertisers pay high CPMs on video to reach our audience. We are sold out until the end of the year at a $28 CPM; our advertisers include WisdomTree, Oppenheimer, TradeStation, Spider, Prudential, Schwab, BlackRock and Emirates.
Read the entire transcript here.
by Chris Roush
Josh Kosman of The New York Post writes that an investor in The-Street.com claims the company’s co-founder and biggest name — TV stockpicker Jim Cramer — is the equivalent of an overpaid baseball slugger who has failed to deliver for shareholders.
Kosman writes, “Private-equity firm Spear Point argued in its latest letter to the company’s board that Cramer’s $1 million-plus salary should be tied to performance when his three-year contract comes up for renewal at the end of the year.
“‘If Mr. Cramer were a player on the New York Yankees, his talent and fame would be marginally interesting,’ according to the letter obtained by The Post. ‘To play in the major leagues you must contribute to your team’s success.
“‘Mr. Cramer has failed over the years to do that for his team, TheStreet, and its Steinbrenners, the shareholders.’
“According to Spear Point, Cramer has received more than $13 million in cash compensation and millions more in stock and other benefits from 1999 until 2012, including a personal driver, while ‘common shareholders have watched almost $400 million in market value evaporate.’”
Read more here.
by Liz Hester
The second panel discussion at Talking Biz News’ conference at the CUNY Graduate School of Journalism in New York invited those on the business end of journalism to talk about the model for making money and what the future may bring.
The discussion touched on a variety of topics including pay walls for web sites, sponsored content, the decline of advertising dollars and how organizations may choose to brand their content.
Bill Grueskin, dean of academic affairs at the Columbia University School of Journalism and former managing editor at WSJ.com, mentioned that some pay walls have had more success than others. Models, like that of the New York Times, were a certain amount of content is free, then you have to pay seems to be working better. Grueskin mentioned the Dallas Morning News’ recent decision to take down its pay wall completely after losing customers.
Most panelists agreed that people would pay for quality, original content and that’s being demonstrated at publications of all sizes. At American City Business Journals, group publisher and executive vice president Rob Fisher said it was exploring ways to get those who subscribe to its print publications, those who pay for emailed content and people who attend events to pay a bit more or to purchase additional products.
Much of his revenue model, which is driven by local journalism, comes from non-journalism sources such as events as well as people paying for premium access or other items. They charge for reprints, links, the use of PDFs and other low cost, higher margin items.
Another force that publishers will have to content with is the rise in competition from journalism nonprofits, foundations, and privately funded organizations, said Steve Shepard, founding dean of the CUNY Graduate School of Journalism and former editor of BusinessWeek.
“What’s heartening to me is the rise of parallel universe in biz journalism,” he said. He mentioned that CUNY would begin a new program in the fall funding journalists who want to do long-form, investigative pieces. They would differ from other nonprofits in that they wouldn’t have their own staff, but seek out reporters with good ideas who needed funding to get them done.
Another disruptive change in the journalism business model is that people are looking for sites to find, organize and aggregate the best content for them, said Ranjan Roy, cofounder of Informerly.com, which is focused on delivering e-commerce news to global professionals. He also mentioned the rise of sponsored content, arguing that readers are accepting of content that doesn’t interrupt their reading.
“The opportunity in sponsored content is about generating an experience that doesn’t interrupt your reader and is as good as your original stories,” Roy said. He mentioned the advent of Facebook and Twitter sponsored posts, which are delivered in the same manner as regular social media.
Elisabeth DeMarse, chief executive officer of TheStreet.com, said that video was another area of opportunity for all sites, including sponsored content. She cited an example of a company sponsoring a video interview with one of their experts as a good example of this type of content. DeMarse, along with many others, are investing in video technology in the newsroom in order to more quickly produce this content on breaking news story.
Shepard urged organizations to have guidelines around sponsored content including how to label it clearly and what to call it. He was dismayed by some outlets calling this content sponsored journalism and said the industry needed to create professional guidelines.
Much of the future of journalism will depend on those on the business side making money. Panelists agreed the model differed for various publications, but that it would involve some type of non-advertising revenue.
by Chris Roush
Arti Patel of Folio writes Tuesday about how CEO Elisabeth DeMarse has overhauled TheStreet.com’s operations.
Patel writes, “DeMarse offered candid comments about downsizing her editorial staff and the expansion of TheStreet’s contributor content model.
“‘When I came in, we went from 70 on staff to 15 and I filled in with the contributor content model,’ she said. ‘We pulled $2 million from the newsroom [costs].’
“The contributor content model allows various industry voices to publish their insights directly on the company’s site, which are then widely distributed across all TheStreet’s media channels. Currently, TheStreet retains 500 content contributors, according to DeMarse, but there is a ‘personal touch’ from the editors that helps facilitate the exchanges.
“‘It’s not a tsunami of content,’ she said. ‘[But] it’s the way of the future.’
“Adjusting her company’s advertising perspective, implementing cost-cutting measures and managing content and talent are the ways DeMarse was able to facilitate TheStreet’s financial turnaround since joining the company over a year ago. In the second quarter of 2013, TheStreet generated $13.5 million, an 8 percent year-over-year increase.”
Read more here.
by Chris Roush
TheStreet.com announced Wednesday that it will sponsor “Nightly Business Report” for the fourth quarter, marking the company’s second sponsorship of the program this year.
The sponsorship will span 65 episodes from Oct. 1 through Dec. 31, each featuring two 15-second funding credits at the beginning and end of the show.
“TheStreet and ‘Nightly Business Report’ have a natural synergy and a shared goal of empowering people with actionable news and information when it comes to their money and investments,” said Elisabeth DeMarse, CEO and chairman of TheStreet, in a prepared statement. “We’re excited to once again support the longest-running business television program in the country and extend TheStreet’s reach to their audience.”
Initially, TheStreet’s sponsorship campaign will highlight Dividend Stock Advisor, one of its subscription services focused on dividend stocks. TheStreet’s funding credit was produced by Houpla Inc. which also designed and implemented TheStreet’s studio and production facilities.
“Nightly Business Report,” co-anchored by Tyler Mathisen and Susie Gharib, features in-depth coverage and analysis of the biggest financial news stories of the day and access to some of the world’s top business leaders and policy makers.
by Chris Roush
The Deal, which was acquired a year ago by TheStreet.com, announced Wednesday the launch of a new version of its iPad application and a new iPhone app.
The apps provide news articles and video reporting from The Deal’s newsroom in addition to a new feature for the iPad app that offers information about the initial public offering market powered by NYSE Euronext. Both apps are available to licensees of The Deal’s transaction information service, The Deal Pipeline.
“We’re taking The Deal Pipeline’s user experience to the next level by offering mobile access to our top reporting in a variety of ways. Those who frequent The Deal can now keep abreast of the latest news as it happens, with periodical reports or intraday news by sector,” said Michael Crosby, chief operating officer for The Deal, in a statement. “Our users are interested in the ongoing news of mergers and acquisitions.”
The Deal Pipeline for iPad and iPhone also feature a breaking news tool providing early alerts on potential deals and a preview of events driving the reporting in The Deal’s newsroom, a twice-daily feature with accompanying slideshow on who’s moving up and who’s moving out across the deal economy, and nine pages dedicated to coverage in consumer and retail, energy, health care, industrials, private equity, real estate, regulation, restructuring and telecommunications media and technology.
by Chris Roush
Mike Arnold of Seeking Alpha writes Monday about TheStreet.com and how it seems to have found a growth model.
Arnold writes, “TheStreet also points out that, comScore, an independent Web measurement company, ranked it first among financial media websites for delivering the difficult-to-reach mass affluent demographic. In particular, TheStreet ranked:
- #1 in Household Income over $100,000;
- #2 in Portfolio Value over $1 million;
- #1 in Trading Activity;
- #1 in Checking Stock Quotes Multiple Times Each Day; and
- #1 in Works in Finance
“As one can see, TheStreet‘s readers possess material wealth. That is not a bad customer to be selling services too, especially ones where growing that wealth is the ultimate goal. They are usually less price sensitive, and willing to pay for content that will provide actionable ideas. This is similar to Seeking Alpha’s goal, actionable and profitable ideas.
“Subscription revenues at TheStreet are growing at a fast clip. For the 6 months ended June 30, 2013, subscription revenues were $21 million, up from $17.8 million, an increase of 18% year/year. Media revenue was down; I’m less concerned with that. In fact, subscription revenues make up 80% of TheStreet‘s revenue, up from 70% in the year ago quarter (although much of that is inorganic through acquisitions). I am certainly impressed with that. The holy grail of publishing is a subscription model with a growing subscriber base, allowing for recurring revenue for consistent and predictable cash flow, meanwhile spreading fixed costs among a wider audience, thereby allowing earnings leverage to shine bright.”
Read more here.