Investor pushes TheStreet.com to consider a sale

Maureen Farrell of CNNMoney.com is reporting that one investor wants to put TheStreet.com in play and is setting itself up as one of the bidders.

Farrell writes, “Private equity firm Spear Point, which holds a 2% stake in the company, wants TheStreet to hire an outside financial adviser to weigh a number of options. Spear Point, based in New Orleans, also said it will make a bid for the company, though it declined to say how much it would be willing to pay.

“TheStreet declined to comment.

“Spear Point’s biggest gripe with the company is its ownership structure.

“Venture capital firm Technology Crossover Ventures owns 11.5% of TheStreet in the form of preferred shares. TCV received these shares when it invested $55 million in TheStreet in late 2007 as part of a deal to give the company a war chest for acquisitions.

“TheStreet’s shares currently trade at less than $2 but TCV has the right to sell its shares at $14.26. Spear Point argues that these shares effectively prevent the company from receiving buyout offers, because any buyer must first spend $55 million to make TCV whole.”

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