Could Jim Cramer’s financial news site TheStreet.com finally be going into play?
Tronc Chairman Michael Ferro, who is divesting the company’s Los Angeles Times and San Diego Union-Tribune for $500 million, is said to want to channel some of that money into digital expansion.
Tronc had looked at TheStreet in the past, sources said, but Cramer’s 22-year-old operation was struggling at the time. TheStreet, in fact, was warned by Nasdaq in late 2016 that its stock could be delisted since its shares had traded below $1 for more than 30 days in a row.
In addition, the last time Tronc came kicking the tires, TheStreet still had a prohibitively expensive block of $55 million in preferred stock from Technology Crossover Partners on its books.
TCP in November 2017 converted its holdings to about $20 million in cash and 6 million shares of common stock, removing that big hurdle to any potential takeover.
“On the heels of announcing a majority investment in BestReviews.com, the Tronc execs are actively eyeing one high-profile business site and looking at several other potential buys,” said Ken Doctor in his influential newsletter, Newsonomics. He declined to name the business site — but others were quick to point to TheStreet as the potential target.
On Thursday, TheStreet’s shares closed at $1.41 a share, down 2 cents. That left the company with a market capitalization of just under $70 million.
Executives at TheStreet could not be reached for comment. Tronc did not return an email by press time.