TheStreet to pay Cramer at least $2 million royalty, $300,000 license fee
Financial news site TheStreet.com will pay cofounder Jim Cramer an annual royalty fee no less than $2 million and an annual $300,000 license fee as part of his new four-year contract, according to a filing Monday with the Securities and Exchange Commission.
In addition, Cramer will receive 1 million shares of restricted stock that he will receive in quarterly installments during the next four years.
The new contract also requires Cramer not to write articles for another financial news site for 18 months if he leaves TheStreet without first obtaining the company’s consent.
The royalty fee and licensing fee for Cramer’s likeness are similar to what he received in his previous four-year contract, which expires Dec. 31, 2017.
Cramer received $3.05 million in compensation in 2016 as part of an agreement that includes the licensing fee for use of his name and likeness, a royalty payment and reimbursement for certain expenses.
Shares of TheStreet rose 33 percent, or 31 cents, to $1.25 on Monday after it reported third-quarter earnings that beat Wall Street estimates and sold 7.1 million shares of common stock to 180 Degree Capital Corp. for $7.8 million, or $1.10 per share. Kevin Rendino, CEO of 180 Capital, joined the board of TheStreet as a result of the transaction.
The company also exchanges all shares of its Series B preferred stock held by Technology Crossover Ventures for 6 million shares of common stock and $20 million in cash.