Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : James Cramer -- Ignore unavailable to you. Want to Upgrade?

To: Stocker who wrote (501)	5/10/1999 9:53:00 PM
From: Stocker	Respond to of 766

TheStreet.com prices at top of range By Bloomberg News Special to CNET News.com May 10, 1999, 4:15 p.m. PT NEW YORK--TheStreet.com, an online financial news company, raised $104.5 million today in an initial stock sale. The New York-based company, whose backers include the New York Times Company and Rupert Murdoch's News Corporation, sold 5.5 million shares at $19 each, the top of the $17 to $19 range set by Goldman, Sachs, which handled the sale. The sale of the 23 percent stake gave the company a market value of $448.5 million. Goldman raised the expected range from $11 to $13 earlier today. "I think it's going to be received very well," said Joel Krasner, an analyst with First Albany. "Demand for securities and financial information is one of the most popular areas on the Internet." While the company isn't profitable, it is growing fast and says it hopes to attract more online investors as subscribers. Online brokers have about 8.5 million accounts, according to an estimate by U.S. Bancorp Piper Jaffray. TheStreet.com said it had 51,000 subscribers at the end of March, up 59 percent from the end of the year. It added about 5,500 customers last year by offering subscriptions in exchange for frequent-flier miles. The three-year-old company has about 50 journalists who produce about 40 stories each business day for its Web site. One of its best-known writers is hedge-fund manager James Cramer, 44, a cofounder of the company who has a stake worth $64.5 million following the sale. Online competitors to TheStreet.com include CBS MarketWatch.com, whose price rose more than fivefold after its public sale raised $46.8 million in January. That increase was the second-biggest gain in first-day trading for any U.S. company. MarketWatch.com, which also has a staff of reporters to write news reports, is backed by CBS and Data Broadcasting. TheStreet.com also competes with a host of other financial news sites that provide stock quotes, financial analysis, and chat rooms for investors. "TheStreet in particular is very well known for its commentary," said Krasner. The company's Web site in March attracted 970,000 visitors who viewed 14 million pages, up from 280,000 visitors and 7 million page views in December. TheStreet.com lost $16.4 million on revenue of $4.6 million last year, compared with a loss of $5.8 million on revenue of $589,000 the year before. About $2.5 million of 1998 revenue came from advertising and $1.7 million from subscriptions. The New York Times Company invested $15 million in the company in February and has agreed to use its Web site to promote TheStreet.com. The two companies also plan to create a jointly owned newsroom. The New York Times received 1.3 million shares of common stock and 37,728 shares of preferred stock for its investment. News America, the U.S. subsidiary of News Corporation, agreed in April to purchase $7.5 million of TheStreet.com shares at the initial sale. As part of this agreement, TheStreet.com will enter into an agreement with Fox News Network to coproduce a television show featuring TheStreet.com's name and editorial staff, according to documents filed with the U.S. Securities and Exchange Commission. Both those investments will give TheStreet.com "increased visibility in the traditional media" and "add a great deal of credibility," Krasner said. Cofounder Martin Peretz, the editor in chief of the New Republic, has a stake worth $57.7 million. Kevin English, 46, the chief executive, has a stake worth $1.6 million, and Dave Kansas, 32, the site's editor in chief, has a stake worth $2.9 million. TheStreet.com will trade under the symbol "TSCM" on the Nasdaq stock market. Hambrecht & Quist and Thomas Weisel Partners assisted in the sale.