Activist investor seeks Salon stake to make run at TheStreet
An activist investor is seeking to purchase a controlling stake in Salon Media and use that to make a run at financial news site TheStreet.com, reports Keith Kelly of the New York Post.
Kelly writes, “Spear Point would then use its control of Salon to make a run at Jim Cramer’s, one person familiar with the plans said.
“TheStreet is a publicly traded company, and Spear Point, which owns a 4.9 percent stake, has been lobbying for board seats.
“It won’t take much cash for Spear Point to buy a controlling stake in Salon. The 22-year-old digital publishing enterprise, which has been plagued by high-level turnover on the executive and editorial side — as well as declining revenue — has a market capitalization of only $6.1 million and a stock price of 8 cents a share.
“At its IPO in 1999, its stock was $10.50 a share with a market cap of $105 million.
“Spear Point has been quietly snapping up Salon Media Group shares in recent weeks, sources said.”
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