Categories: OLD Media Moves

VC fund buys stake in TheStreet.com

Technology Crossover Ventures, an investment firm that provides capital to late-stage private and public companies, has agreed to purchase a minority stake in business news Web site TheStreet.comÂ to help pay for itsÂ expansion strategy, according to a short story on the Web site.

The story stated, “The investment of $55 million represents the purchase of preferred stock and warrants to buy common stock. The preferred stock converts into common stock at $14.26 a share. The five-year warrants permit TCV to purchase approximately 1.1 million common shares of TheStreet.com at an exercise price of $15.686, or a premium of 10%.

“Additionally, Jay Hoag, founding general partner of TCV, will join TheStreet.com’s board.

“‘TCV is one of the largest private equity and venture capital firms, with a strong reputation and history of success,’ said Tom Clarke, chairman and CEO of TheStreet.com. ‘Our alignment with TCV is a clear indicator of our intention to aggressively move forward with our expansion plans as a leading player in the online financial media sector.'”

Read more here.Â

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.