TechCrunch announced today that TheStreet.com has acquired their partner site StockPickr. TheStreet.com formerly owned 49.9% of Stockpickr, but has now purchased the remaining 50.1%. Stockpickr was founded and run by former hedge fund manager and published auther, James Altucher.
TheStreet.com (TSCM) was started in 1996 by now-famous investing pundit Jim Cramer. The online investment site did not turn a profit until nine years later, in 2005. Continually expanding its internet presence, on March 8 TheStreet.com announced a distribution deal with Howard Lindzon’s popular Wallstrip.
StockPickr founder James Altucher has commented that he will remain actively involved with the site, which would indicate TheStreet.com has wisely retained him on an earnout. I wouldn’t be shocked if a similar deal will be announced with Howard Lindzon. TheStreet.com would be wise to pull WallStrip’s popular content in-house, if they have the chance.
The consensus in the Finance 2.0 space is that this deal signals a growing embrace of Web 2.0 innovations by the financial world. This may encourage further experimentation and growth by startups as well as established companies.