Financial media publisher TheStreet.com Inc. has come a long way since it pulled itself off the auction block a year ago after receiving little interest from bidders over the course of a year. Now, with an acquisition strategy in place, TheStreet.com's earnings and traffic are growing.
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TheStreet.com reported record revenue of $16.1 million for the quarter, a 24% increase over the same time last year. Its no coincidence that the 24% increase in revenue happened when TheStreet.com announced record traffic of over 6 million unique visitors each month. Earlier in the year, TheStreet.com acquired Stockpickr.com, a financial social networking site, which could explain the surge in traffic. Meanwhile, the additional revenue could be attributed to its $20.7 million acquisition of online advertising service Corsis Technology Group LLC in August. SEC Investor notes:
TheStreet.com's acquisition of Corsis, a leading provider of custom solutions for advertisers, enabled it to shift into higher-margin advertising. The acquisition included the Internet property Promotions.com, which is known for working with some of the largest brands in the world. The company's subsidiary, StockPickr, also became the first financial social networking website to surpass 100,000 user-generated portfolios.
It's worth noting that TheStreet.com just acquired Bankers Financial Products Corp. for $25 million in cash and stock. Bankers Financial owns Web sites such as BankingMyWay.com and Rate-Watch.com that provide comparative data about banks and other financial institutions.
One has to wonder, if TheStreet.com were to put itself on the block now, how many rivals would come clamoring with an offer? — Matthew Wurtzel
See earnings from SEC Edgar
See SEC Investor blog: TheStreet surges on acquisitions
See Dealscape: TheStreet looks to add more traffic
See TheDeal.com: TheStreet.com won't sell
See TheDeal.com: TheStreet.com explores sale
See 2005 auction details from Auction Block (subscription required)
