(Partly) Sold

We’ve been wondering when a buyer would step in for, 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

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at

Tagged In

deals sai-us