TheStreet.com Acquires $1.2M Stake In Social Net Geezeo, With An Option To Buy Outright
This story was written by David Kaplan.
TheStreet.com (NSDQ: TSCM) has taken what it's calling an "initial" equity stake worth $1.2 million in personal finance community site Geezeo, giving the market news site an approximate 13 percent interest in the company. Under the terms of the deal the two have struck, TheStreet also has the option to purchase the year-old Geezeo based on an equity value of $12 million at any point over the next 12 months. The invest first, buy later pattern is similar to what the company did when it acquired social stock picking site Stockpickr.com.
The two sites have also formed a strategic partnership, whereby both will share content with the other. TheStreet plans to offer Geezeo's networking tools to readers of its subsidiary sites, including Stockpickr.com, BankingMyWay.com and MainStreet.com. Apart from the usual social net aspects Geezeo offers - such as letting members share tips about getting out of debt or other personal finance ideas - it also has a service function that helps users keep their financial information on the site. Some of the services on the site include tools for creating budgets and tracking spending. Geezeo's competitors include personal finance upstarts like Wesabe.com, which now faces a competitor with the backing of TheStreet. More details on Geezeo's official blog and in the release.
By David Kaplan