Tag Archives: TheStreet.com

Herb Greenberg CNBC

Why leave CNBC for TheStreet.com?

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Herb Greenberg writes about his decision to leave business news network CNBC and return to financial news site TheStreet.com.

Greenberg writes, “The decision to leave CNBC was a tough one — as emotionally difficult as when I decided to leave the my 10-year gig as a daily business columnist at The San Francisco Chronicle for TheStreet in 1998, where I remained for six years. During that time I was a frequent CNBC guest and contributor before joining full-time a little more than three years ago.

“In the latest episode of CNBC Unscripted, how many places can a person live in a lifetime? Herb Greenberg’s travel resume may surprise you.

“Why leave and why now? No surprise to those who know me—it’s about Southern California. Many people thought my wife and I were crazy (no — nuts!) to leave San Diego, where we lived for 10 years, for the East Coast. Turns out they were right. This, our third time doing the East Coast stint, was strike three.

“Truth be told—taxes, earthquakes and fires notwithstanding — we simply missed San Diego. It had become home, and with my contract about to expire (and CNBC steadfastly refusing to move its HQ there to accommodate me) we decided to go back.

“Staying at CNBC full-time meant staying at HQ in New Jersey. My seat is in the middle of the newsroom and the in-house, in-studio interaction is an intangible that doesn’t work the same remotely, let alone from 3,000 miles away.”

Read more here.

Herb Greenberg

Greenberg rejoining TheStreet.com

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TheStreet.com announced Thursday that business journalist Herb Greenberg has rejoined the company.

Greenberg, a senior stocks commentator on CNBC, will serve as editor of Herb Greenberg’s Reality Check, a subscription newsletter designed to help investors better manage risk; write a daily blog for TheStreet’s main free site and contribute to Real Money’s “Columnist Conversation.” He also will remain a regular CNBC contributor.

“We’re thrilled Herb Greenberg is returning to TheStreet. No one is more passionate and does more work around companies and industries than Herb does. He sparks serious conversation to help investors separate speculation from reality by shining a spotlight on risks,” said Elisabeth DeMarse, CEO and chairman of TheStreet, in a statement. “Our goal is to educate investors, and help investors make money.  But avoiding losing money is just as important as making it — and nobody does it better than Herb.”

Greenberg was senior columnist for TheStreet from 1998 until 2006, before joining MarketWatch, during which time he also wrote a weekly column for The Wall Street Journal. For many years he wrote a monthly column for Fortune magazine. Earlier in his career, he was a daily business columnist for the San Francisco Chronicle and a business reporter for the Chicago Tribune

“I’m excited to be returning to my online journalism roots,” Greenberg said. “A lot has changed over the years, but one thing hasn’t: TheStreet stands out as an independent, edgy voice. It remains a perfect place to give investors a dose of reality — and remind them of the risk many choose to ignore.”

Greenberg will be based in San Diego.

On his Facebook page, Greenberg wrote, “Truth be told — taxes, earthquakes and fires notwithstanding — we simply missed San Diego. It had become home, and with my contract about to expire, we decided to go back.”

The-Street-Scher-Pentagram-Logo

TheStreet reports improvement in revenue and earnings

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Financial news site TheStreet.com reported second-quarter results that saw revenue increase 8 percent year over year, as its subscription business showed strong growth.

A story on its website states, “Revenue for the second quarter was $13.5 million, a rise of 8% annually, and 7.2% sequentially, as subscription revenue rose 23.4% year over year. The company noted it ended the quarter with 77,711 subscriptions, an increase of 2.5% from the prior year and 2.1% sequentially. Average monthly churn, the number of users leaving, improved from the prior year, falling to 3.1% from 3.9%.

“Media revenue for the period was $2.7 million, a decline of 27.5% from the year-ago quarter, but up 17.2% from the previous quarter.

“The company reported a net loss of $1.1 million, or 3 cents a share, better than the $1.9 million loss in the year-ago period. Adjusted EBITDA was positive for the quarter, coming in at $0.3 million. Operating cash flow for the first six months of the year increased by $1.2 million.

“‘TheStreet’s second quarter revenue growth of 8% is our first year-over-year growth since 2011 and reflects the continued execution of our strategy. We are driving revenue growth by smart acquisitions, investing in our institutional and retail subscription platforms, focusing on operational excellence and modernizing our infrastructure,’ said Elisabeth DeMarse, Chairman, President and CEO in the press release.”

Read more here.

Elisabeth DeMarse

Fighting to turn around TheStreet.com

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Matthew Kassel of The New York Observer writes about Elisabeth DeMarse, the CEO brought in to revise TheStreet.com.

Kassell writes, “Ms. DeMarse came to TheStreet at the behest of Woody Marshall of Technology Crossover Ventures, a large shareholder in the company. After a little more than a year on the job, Ms. DeMarse has imbued TheStreet, which went public in the late ’90s but lost its way in the ensuing decade or so, with a fresh sense of direction.

“It wasn’t easy. When Ms. DeMarse stepped in, TheStreet was mired in stagnancy, according to Bill Martin, a former Bankrate board member who bought a 12.5 percent stake in TheStreet upon Ms. DeMarse’s arrival.

“Mr. Cramer, host of CNBC’s Mad Money and Squawk on the Street, told the new CEO that it was going to be ‘a complete mess.’

“Ms. DeMarse was undeterred. ‘My biggest challenge at TheStreet is making sure that our work force is passionate about the markets,’ Ms. DeMarse told The Observer, adding that the site had become a ‘snoozy read.’ ‘We should be like ESPN. You shouldn’t work at TheStreet unless you love stocks, love the markets and know what a PEG ratio is.’

“‘I wanted a really big change,’ she continued, ‘and I wanted to be in a place where I could have a nice big canvas to paint on.’

“She got what she wanted. TheStreet is a diverse company with a relatively deep infrastructure. Along with its established subscription business—featuring the work of writers like Doug Kass and Mr. Cramer—TheStreet has ‘a big front porch,’ as Ms. DeMarse put it.”

Read more here.

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TheStreet.com shareholder: We will go to other investors

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Mark Waller of The Times-Picayune got in touch with the New Orleans-based investment company that wants to acquire TheStreet.com and found them settling in for a long fight.

Waller writes, “That might be what Perkin and Bienvenu will seek to do with at least some of the operations of TheStreet through their new partnership, which uses a strategy they call ‘transaction oriented activism,’ meaning they want to improve the financial success of companies not only by voicing their arguments as shareholders but by buying the companies, perhaps taking publicly traded companies private, or accommodating other sales.

“Perkin and Bienvenu said they hadn’t received a response from TheStreet’s board as of Wednesday. A spokeswoman for the TheStreet said the company did not have any comment. Cramer’s television show is a separate entity from TheStreet, which provides business and financial news and information through digital channels.

“Though it might seem unlikely that a New Orleans investment firm will acquire TheStreet, Bienvenu said they plan to be persistent.

“‘We’re not going away, so the company will respond eventually,’ he said.

“‘We believe there’s value here’” Bienvenu said. ‘We believe there’s money to be made.’

“If the company doesn’t respond, they said, they will consider making an unsolicited bid to buy it.”

Read more here.

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Investor pushes TheStreet.com to consider a sale

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Maureen Farrell of CNNMoney.com is reporting that one investor wants to put TheStreet.com in play and is setting itself up as one of the bidders.

Farrell writes, “Private equity firm Spear Point, which holds a 2% stake in the company, wants TheStreet to hire an outside financial adviser to weigh a number of options. Spear Point, based in New Orleans, also said it will make a bid for the company, though it declined to say how much it would be willing to pay.

“TheStreet declined to comment.

“Spear Point’s biggest gripe with the company is its ownership structure.

“Venture capital firm Technology Crossover Ventures owns 11.5% of TheStreet in the form of preferred shares. TCV received these shares when it invested $55 million in TheStreet in late 2007 as part of a deal to give the company a war chest for acquisitions.

“TheStreet’s shares currently trade at less than $2 but TCV has the right to sell its shares at $14.26. Spear Point argues that these shares effectively prevent the company from receiving buyout offers, because any buyer must first spend $55 million to make TCV whole.”

Read more here.

TheStreet.com logo

TheStreet.com CEO received $1.3 million in 2012; Cramer received $1.47 million

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Elizabeth DeMarse, who became president and chief executive officer of TheStreet in 2012, received more than $1.3 million on total compensation during her first year on the job.

More than $830,000 of that compensation was in the form of stock options, according to the proxy statement filed Tuesday by the online financial news company.

DeMarse receives a base salary of $400,000. She also received a $200,000 bonus for joining the company. She also has the option to purchase up to 1.75 million shares of company stock at a price of $1.80 per share.

John Ferrara, the company’s new chief financial officer hired in February, is being paid a base salary of $220,000. He received a $10,000 signing bonus.

TheStreet co-founder Jim Cramer no longer receives a salary or bonus from the company. But he does receive a royalty based on the revenue derived from the company’s Action Alerts PLUS subscription service. In 2012, Cramer received $1.47 million in royalties pursuant to the agreement and was also awarded a discretionary bonus for 2012 of $11,992.

The proxy makes no mention of the compensation of editor in chief William Inman, who joined last year.

Read the SEC filing here.

THESTREET, INC. IPAD AND IPHONE APP

TheStreet redesigns iPhone and iPad apps

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TheStreet has redesigned its free Apple iPad and iPhone applications.

Key features include:

  • Actionable and insightful stock market news and commentary from TheStreet’s leading experts, including Jim Cramer, Stephanie Link and Doug Kass;
  • Expanded video reporting from TheStreet’s new studios located across the New York Stock Exchange;
  • Robust charting, market and fundamental data;
  • Rapid downloading to allow users to read stories even when offline.

“We’ve taken TheStreet’s deep editorial content, videos, data and tools and packaged them into two powerful iPad and iPhone apps. They are the perfect balance of substance and style, setting us apart from other financial news apps,” said Elisabeth DeMarse, CEO of TheStreet, in a statement.  “These apps are a terrific leap ahead, and users can expect a regular stream of updates going forward, including new apps for Android and BlackBerry, as well as fully integrated access to our leading paid subscription services, all in one intuitive platform.”

New versions for Android and Blackberry phones are coming as well.

DealFlow

TheStreet acquires DealFlow Media

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Financial news company TheStreet Inc. announced Monday that it has acquired the financial newsletters and databases, The DealFlow Report, The Life Settlements Report and the PrivateRaise database from DealFlow Media Inc.

Financial terms of the deal were not disclosed.

A story from TheStreet states, “TheStreet will integrate the acquired content into The Deal, which TheStreet acquired in September from Wasserstein & Co.

“The DealFlow report covers the microcap equity markets including initial public offerings and private placements, while The Life Settlements Report focuses on life insurance settlements. The content of both newsletters will be made available to The Deal Pipeline subscribers. The target has 10 employees, half based in Petaluma, Calif., and the others in Woodbury, N.Y.

“DealFlow will continue to operate its DealFlow and Life Settlement conferences under a licensing agreement with The Deal. DealFlow founder and chief executive Steven Dresner will stay on during the transition period through a consulting arrangement. ‘The combination of our leading small cap finance content with The Deal’s M&A reporting is a natural fit,’ he said in a statement. TheStreet has used The Deal’s content as a growth platform to help increase revenue from subscription and licensing services.”

Read more here.

NBR set

TheStreet.com to sponsor Nightly Business Report

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TheStreet.com has agreed to sponsor “Nightly Business Report,” becoming the first sponsor of the public television show since it was acquired earlier this year by CNBC.

“TheStreet is all about helping our users and subscribers become better investors,” TheStreet’s chairman and CEO, Elisabeth DeMarse stated in a prepared statement. “Our audience is naturally aligned with that of NBR, the longest-running business television program.”

“Nightly Business Report” reaches 96 percent of U.S. households.

“We are proud to have this award-winning, public television program as part of CNBC’s portfolio of multi-media offerings and are very pleased to welcome TheStreet as the inaugural sponsor,” said Robert Foothorap, senior vice president, CNBC Global TV Network Sales, in a statement.

TheStreet’s sponsorship includes two 30-second funding credits, featured at the beginning and end of “Nightly Business Report,” running April 1 to June 28.