Posts filed under “Corporate Management”
This is very interesting, and for a number of reasons:
1) Stockpickr is the largest social networking site dedicated to investing. It is also, to the best of my knowledge, the first vertical social networking site to be acquired period.
2) More interestingly, it is the first major acquisition done by TheStreet.com.
Henry Blodget (yes that Henry Blodget) made an interesting and perhaps related observation last week. (Note he and Jim Cramer do not seem to be fans of each other) Blodget wrote: "no one is talking about the biggest single risk-factor at any one company since
Martha Stewart Living Omnimedia."
He has a valid point. In the post Martha-in-the-gray-bar-hotel era, any single individual overly identified with a company — be it founder, spokesperson, or main personality raises some risk for investors.
With the Stocpickr acquisition behind it — and perhaps several others in the future — we may be seeing a process where TheStreet.com is diversifying itself from that risk factor. That not only is good for TSCM’s shareholders, but potentially good for TheStreet.com, as they diversify themselves from being at risk from the Cramer-gets-hit-by-a-bus fear. It also improves the odds of someone else potentially acquiring TheStreet.com itself.