Technology Crossover Ventures, an investment firm that provides capital to late-stage private and public companies, has agreed to purchase a minority stake in
, the publisher of this Web site, in order to support its accelerated expansion strategy.
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."
TheStreet.com has been broadening its content as it seeks to become the premier online destination for money. The company has recently acquired Stockpickr.com, a financial social-networking Web site; BankingMyWay.com, a provider of rates on CDs, savings accounts, interest checking, money markets, mortgage/home equity and auto loans; and Rate-Watch.com, a provider of pricing solutions for banks and credit unions.
The company also recently purchased Promotions.com, a one-stop shop for advertisers, ad agencies and corporations in search of a broad spectrum of interactive ad services. In the coming months, TheStreet.com will launch a new site, Mainstreet.com and will relaunch its free sites, TheStreet.com and Stockpickr.com.
"We at TCV view TheStreet.com as a premier financial media company and an industry pioneer," Hoag said in a statement. "Our confidence in TheStreet.com's growth strategy is based on an appreciation of its strong historical execution and an ability to intuitively navigate marketplace trends."
Among TCV's investments have been