Categories: OLD Media Moves

Should TheStreet part ways with Jim Cramer?

Jim Cramer

Thomas Niel on Seeking Alpha writes that financial news site TheStreet.com should consider distancing itself from Jim Cramer when his contract expires this year.

Niel writes, “At much higher valuations, TheStreet attracted the attention of two activist investors (Cannell Capital and Spear Point Capital). Despite very interesting campaigns (which entailed some hilarious letters to management), their efforts have been slow to move the needle. Cannell Capital took a more colorful, aggressive approach, calling out Jim Cramer on taking millions in compensation from TheStreet without delivering much value. Spear Point took a more constructive approach, and it appears to be working, albeit slowly; according to the most recent conference call, a shareholder resolution to declassify the board and have annual elections will be presented at the next annual shareholder meeting (June 8th). This is a move in the right direction, and will increase the chance of a new, more shareholder-friendly slate of directors.

“TheStreet’s current strategy is to grow all of its business units, including further investment in TheStreet’s advertising-supported businesses. I believe a focus on the lower-hanging fruit that is the business to business unit is the better area to focus time and resources. TheStreet will never become a juggernaut like CNBC. Despite advances in online video, TheStreet is better off either selling or rationalizing the costs of the declining ad-supported websites and subscription services. Disassociating from Jim Cramer may also be a good call long term: Mad Money’s ratings peaked in 2008, and Cramer’s fan base is not growing. Adding in the fact the Jim Cramer cannot actively promote TheStreet.com on his show further reduces the value he provides the company. While Jim Cramer is the co-founder of TheStreet, he does not control the company; Cramer owns 2.891 million shares, or around 8.2% of the company.”

Read more here.

Chris Roush

Chris Roush was the dean of the School of Communications at Quinnipiac University in Hamden, Connecticut. He was previously Walter E. Hussman Sr. Distinguished Professor in business journalism at UNC-Chapel Hill. He is a former business journalist for Bloomberg News, Businessweek, The Atlanta Journal-Constitution, The Tampa Tribune and the Sarasota Herald-Tribune. He is the author of the leading business reporting textbook "Show me the Money: Writing Business and Economics Stories for Mass Communication" and "Thinking Things Over," a biography of former Wall Street Journal editor Vermont Royster.

Recent Posts

LinkedIn finance editor Singh departs

Manas Pratap Singh, finance editor for LinkedIn News Europe, has left for a new opportunity…

1 day ago

Washington Post announces start of third newsroom

Washington Post executive editor Matt Murray sent out the following on Friday: Dear All, Over the last…

2 days ago

FT hires Moens to cover competition and tech in Brussels

The Financial Times has hired Barbara Moens to cover competition and tech in Brussels. She will start…

2 days ago

Deputy tech editor Haselton departs CNBC for The Verge

CNBC.com deputy technology editor Todd Haselton is leaving the news organization for a job at The Verge.…

2 days ago

“Power Lunch” co-anchor Tyler Mathisen is leaving CNBC

Note from CNBC Business News senior vice president Dan Colarusso: After more than 27 years…

2 days ago

Upset CoinDesk staffers send letter to owner

Members of the CoinDesk editorial team have sent a letter to the CEO of its…

2 days ago