Monday, October 5, 2015

RateWatch was Acquired by TheStreet in 2007 for $25 Million

This Weekend Business Insider Article:
 Online lending is 'disruptive and could be very large' - that has the Fed worried


 Rate Watch can explode through servicing the DISRUPTIVE online lending business! 

If you break down the current value of the TheStreet (TST) $1.65  (6.2% dividend), you will find the underlying business is valued at $23 million.

Current Market Capitalization: $57 million
Cash: $34 million

Total Underlying Business : $23 million
Stock is valued at 1/3rd Sales

The Deal :

  • 2012 acquired for $5.8 million (cash). $11.5 million in sales. paid 1/2 Sales
BoardEx:

  • 2014 acquired for $21 million (cash). $9.5 million in sales. paid 2X sales
Rate Watch
  • 2007 "$25 million, consisting of approximately $16.9 million in cash (net of $3.9 million in debt repayment) and 636,081 shares of unregistered common stock of TheStreet.com." from TheStreet press release 2007
TheStreet 
  • founded 1996

This Weekend Business Insider Article: 

Online lending is 'disruptive and could be very large' - that has the Fed worried


I believe Rate Watch can explode through servicing the DISRUPTIVE online lending business! 

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