From the New York Post:
Salon Media near deal to sell big stake to activist hedge fund
Salon Media, one of the trailblazing pioneers of digital publishing that has struggled in recent years, is on the brink of selling a controlling stake to activist investor Spear Point Capital, sources tell Media Ink.TalkingBizNews
Spear Point would then use its control of Salon to make a run at Jim Cramer’s , one person familiar with the plans said.
TheStreet is a publicly traded company, and Spear Point, which owns a 4.9 percent stake, has been lobbying for board seats.
It won’t take much cash for Spear Point to buy a controlling stake in Salon. The 22-year-old digital publishing enterprise, which has been plagued by high-level turnover on the executive and editorial side — as well as declining revenue — has a market capitalization of only $6.1 million and a stock price of 8 cents a share.
At its IPO in 1999, its stock was $10.50 a share with a market cap of $105 million.
Spear Point has been quietly snapping up Salon Media Group shares in recent weeks, sources said.
Last reported prices on SLNM: 20¢ (it trades by appointment) and TheStreet, 82¢.