TheStreet, Inc. (NASDAQ: TST) is having an overwhelmingly strong start to the trading session in the pre-market this morning, and for good reason. The company announced an asset sale that excited investors, sending the stock screaming for the top. Today, we’ll talk about:
- The asset sale;
- what we’re seeing from TST stock as a result; and
- what we’ll be watching for ahead.
TST Announces Asset Sale
As mentioned above, TheStreet is having an incredibly strong start to the trading session this morning after announcing an asset sale. The company will be selling its institutional units to Euromoney Institutional Investor PLC.
According to various reports, the comapny will be selling the assets for $87.3 million in cash. The unit comprises of The Deal and relationship mapping service BoardEx. Of course, the sale is subject to approval by TST shareholders as well as other closing conditions. Nonetheless, it is expected that the deal will close in the first quarter.
In a statement, Andrew Sashbass, CEO at Euromoney, had the following to say about the TST deal:
The businesses are perfectly placed to grow further under Euromoney ownership, with the group’s existing data expected to enhance the BoardEx platform.
The above statement was followed up by David Callaway, President and CEO at TST. Here’s what he ahd to offer:
The primary goal of our board and management team has always been to maximize shareholder value, and the sale of our B2B business to Euromoney is a unique opportunity to do just that… Our board decided this was the best path to maximize value following our recent sale of RateWatch
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to TheStreet, the news proved to be overwhelmingly positive. After all, the asset will drive a significant amount of funding into the company. At the same time, it will help the company to focus on its core assets. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:21), TST is trading at $2.05 per share after a gain of $0.53 per share or 34.87% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on TST. In particular, we’ll be following the transaction to ensure that it closes as it is still subject to shareholder approval and customary closing conditions. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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