We’ve been perplexed for some time about TheStreet.com’s series of 2-month employment deals with its founder, columnist, and traffic firehose, Jim Cramer. Barrons’ Eric Savitz has an explanation: contract renewal talks aren’t going smoothly. Cramer and Barrons have been at war for years, and Barrons reporters have reportedly been banned from CNBC’s air. But Eric’s explanation make sense to us.
Cramer’s employment agreement with TheStreet expired Dec. 31, 2007. It’s been extended twice since then: Once through Feb. 15 and again through April 15. CEO Tom Clarke didn’t offer any specifics on Cramer’s contract talks, and shares in TSCM slid 8% today, even after the company reported sales up 38% and earnings in-line with street estimates.
Cramer (SA 100 #19) makes $750,000 a year from TheStreet.com, money he doesn’t really need. He still owns a $20 million stake 14% stake in the company, currently worth $42 million, but his main calling card is his show on CNBC.
So, the question is, does Cramer still need The Street? He does if he wants readership on the Web. TheStreet.com has more than 10 times the traffic as CNBC.com.
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