In a strategic play designed to improve its existing services, financial
news Web site TheStreet.com
Monday lured investments from a well-known technology executive and a portal operator.
The company sold a 5% stake of its company to Paul Allen’s Vulcan Ventures and Web-site operator Go2Net
for $7.5 million in cash.
As a part of the deal, Vulcan and Go2Net each took an
option to buy 7.45% of TheStreet.com stock within six months.
Thomas Clarke, CEO of TheStreet.com, said Go2Net has done a superb job on
their message board and that he would like them to do the same for his
“I firmly believe that you don’t have to recreate the wheel, particularly
when Go2Net is doing such a good job,” said Clarke.
Under terms of the licensing deal, users of TheStreet.com’s main site can
visit message boards using Go2Net’s technology platform, and subscribers to
its paid RealMoney.com site can post and view messages in a private-label
Clarke said the $7.5 million in cash would be added to TheStreet.com’s
existing $90 million in the bank.