We’ve been wondering when a buyer would step in for TheStreet.com, which at one point this summer seemed like an obvious takeover candidate. We’re still waiting, but in the meantime PE firm Technology Crossover Ventures has announced that it’s investing $55 million in the company, via a combination of preferred stock and warrants.
The release doesn’t spell out the exact stake that TCV is buying, but $55 million is nearly 14% of TSCM’s current market cap of $400 million. TCV is buying 1.1 million warrants priced at 10% premium to today’s stock price, and an undisclosed number of preferred shares priced at $14.26, which is where the stock closed yesterday.
What’s TSCM going to do with the money? Fuel its “accelerated expansion strategy”, which “focuses on broadening its content and reach through both organic growth and strategic accretive acquisitions.” The company reported decelerating growth in its Q3 results. Release
Business Insider Emails & Alerts
Site highlights each day to your inbox.