News Corporation, TheStreet.com in IPO deal
News Corporation is stepping up its Net efforts once again with a pre-IPO investment in financial site TheStreet.com.
TheStreet.com, which provides financial news and commentary, will offer 5.5 million shares for between $11 and $13, according to a filing with the Securities and Exchange Commission. It will trade under the ticker symbol "TSCM."
The company last month entered into an agreement with News America, a subsidiary of Rupert Murdoch's News Corporation, in which News America will buy $7.5 million of the common stock that will be sold in the IPO at the IPO price, according to the filing. In exchange, TheStreet.com will advertise on News America's media properties and with affiliates such as Fox, the filing said.
In addition, TheStreet.com and Fox News Network "will coproduce a television show featuring TheStreet.com's brand name, editorial staff, and outside contributors to be cablecast on Fox News Channel," the filing said.
The investment follows News Corporation's announcement last month that it was setting aside $300 million for a new venture that will develop new media projects. The venture, dubbed e-partners, is an investment vehicle for the company to take minority stakes in Net, interactive TV, and wireless communications firms, the company said.
In addition, News Corporation has been beefing up its Web and interactive properties, such as TV Guide.
The New York Times also owns a stake in TheStreet.com, following a $15 million investment in cash and services in February.