Interactive financial media company MarketWatch.com has lured another $86 million in financing from its two major shareholders.
The company received about $86 million in cash, advertising and promotion from its two major shareholders, CBS Broadcasting Inc. and Data Broadcasting Corp. in an agreement which closed on Friday and was announced in late March.
CBS shelled out $13 million in cash and $20 million in advertising and promotion, while DBC paid about $43 million in cash. Both companies will receive about 1.14 million shares of newly issued MarketWatch.com common stock at about $37.83 per share, based on an average of the closing prices for the stock on the five days before the signing of the agreement on March 28.
CBS, which is in the process of being acquired by Viacom, held 32 percent of MarketWatch.com’s equity prior to the deal. DBC, which is about 60 percent owned by the Financial Times group, also held 32 percent of MarketWatch.com before the deal.
MarketWatch.com President and Chief Executive Officer Larry Kramer said the closing would allow MarketWatch.com to build its position as the Internet’s most visited financial site while continuing to invest in its Internet, television and radio businesses.