Financial news company TheStreet announced Wednesday that it had reached a merger agreement to be acquired by TheMaven, Inc.
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CNBC host Jim Cramer founded the company, according to The New York Post. A source familiar with the company's thinking told FOX Business that Cramer is expected to leave the company.
As part of the agreement, a subsidiary of TheMaven will get the total amount of outstanding common shares of the financial website for a purchase price of $16.5 million, according to a news release.
A majority of TheStreet’s board decided to allow the agreement to move forward, the company said.
“The transaction is subject to the approval of a majority of the outstanding shares of common stock in TheStreet under Delaware law and is expected to be submitted for stockholder approval and close in the third quarter of 2019,” the news release said.
TheStreet’s chief executive officer and chief financial officer Eric Lundberg hailed the news as being “a good outcome” for the company’s shareholders.
"For over a year we have had a strategic committee comprised entirely of independent directors tasked with evaluating strategic alternatives for the business with the assistance of a financial advisor,” Lundberg said, while noting the sales of other entities that he said took place in both 2018 and 2019.
"After taking into account the ongoing development needs and operating costs of the remaining consumer business as a stand-alone public company, we believe this agreement represents the best way to maximize value to TheStreet shareholders," Lundberg continued.