Global AI in healthcare market expected to rise to $164B by 2030
The market size for 2023 was $10.31 billion
Read more...Financial news publisher TheStreet has completed the purchase of mergers and acquisitions publication The Deal from Wasserstein & Co, according to a filing with the Securities and Exchange Commission.
The Deal was purchased for $5.8 million. As part of the terms, The Deal will cease publication of its magazine, and an unspecified number of its 120 employees, 68 of which are full time journalists, will be terminated.
“In connection with the acquisition of the equity interests of The Deal disclosed above, the Company has committed to a restructuring plan which will include the termination of The Deal employees as well as other steps to improve operational effectiveness and reduce costs, as a result of which the Company will incur material charges for exit and disposal activities under generally accepted accounting principles,” it says in the filing.
According to a press release Wednesday, the two companies will be combining their publications. TheStreet’s buy-side newsroom will become part of The Deal Pipeline, while its Chat-on-the-Street product will be added to the products sold by The Deal’s sales team. The Deal Pipeline will be marketed on TheStreet, and The Deal’s webinars will now be available to subscribers of TheStreet.
“This is a terrific combination that grows the most profitable portion of our business, subscription revenues," said Elisabeth DeMarse, CEO of TheStreet, said in a statement.
"The Deal is a prominent and well-respected brand that the market will intuitively associate with TheStreet, creating new revenue opportunities for both businesses at minimal incremental cost."
Kevin Worth, CEO of The Deal, put a positive spin on the new, saying, "This combination will build upon our digital strategy and is a great opportunity to move the business forward to better serve customers.”
The Deal was founded in 1999 as The Daily Deal newspaper, eventually shifting its focus online, offering a digital subscription model. It currently offers its content to 40,000 subscribers through The Deal Pipeline, which gives readers interpretation, analysis and data on corporate transactions.
The New York City-based financial website raised $30 million from Rustic Canyon Ventures, along with U.S. Equity Partners.
TheStreet, also based in New York City, was founded in 1996 by Mad Money star Jim Cramer. It distributed content through online, social media, tablet and mobile channels, with brands that include RealMoney, RealMoney Pro, Stockpickr, Action Alerts PLUS, Options Profits, Chat on TheStreet, MainStreet and Rate-Watch.
When TheStreet's stock debuted in May 1999, it was selling for around $60 a share. The stock coming down steadily since that time, to the point where shares of TheStreet fell .71% Wednesday, and are now selling for $1.39. The company's market cap is currently $45 million, while its cash and cash equivalents are closer to $40 million, meaning the market doesn't think very much of it.
In its earnings report last month, TheStreet saw revenue drop 17% to $12.5 million, a net loss of $1.9 million. Revenue from its subcription service dropped 12% to $8.8 million.
Yet, despite all of that, the company keeps ticking. It will try use this acquistion to once again become revelant to its shareholders.
Neither TheStreet nor The Deal were available for comment.
The market size for 2023 was $10.31 billion
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