Categories: OLD Media Moves

Rebuilding TheStreet

Matthew Flamm of Crain’s New York writes Sunday about the overhaul at TheStreet.com, which includes de-emphasizing co-founder Jim Cramer and changing its name to simply TheStreet.

Flamm writes, “In the past year, under CEO Daryl Otte, it has also downsized Mr. Cramer’s presence on its home page and removed him from the chairman’s seat—moves aimed at showcasing a new editorial team and making TheStreet less reliant on its biggest star. Mr. Cramer has long been both an asset and a liability, since investors worry about what TheStreet would be without him.

“But as the company works through a revamp that began with Mr. Otte’s appointment in May 2009, it is holding tight to one part of its heritage: It relies on advertising for only one-third of its revenues and draws the rest from subscriptions.

“With nearly 91,000 subscribers — most of whom were converted to TheStreet’s premium sites from the free flagship, and who now pay $300 to $5,000 a year — the company can boast that it has long been ahead of its time. Sites that rely solely on advertising have been struggling in an increasingly competitive online market.

“Now Mr. Otte is focused on setting up the media company for growth after two straight years of losses.”

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Young Investor says:
May 1, 2012 at 12:26 am
Rebuilding TheStreet will not be easy. This is an excellent company with some solid assets, great value and wonderful management. Yet the company desperately lacks goals or profitability. Although it is cheap the increasing difficulty to become profitable is what steers me away. TheStreet will need to diversify its services especially if they are to be less reliant on Jim Cramer.