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Jim Cramer-founded TheStreet's stock rallies after buyout deal with TheMaven

Tomi Kilgore

Shares of TheStreet Inc. surged 7.0% in morning trading Wednesday, after the financial news service founded by money manager and media personality Jim Cramer said it agreed to be acquired by TheMaven Inc. for $16.5 million in cash, an excess cash distribution and a contingent value right. Under terms of the deal, TheStreet shareholders will receive $33.0 million to $34.5 million, or $6.19 to $6.47 a share for each TheStreet share they own. That represents a premium of 9.0% to 13.9% to Tuesday's stock closing price of $5.68. "This is a good outcome for TheStreet's shareholders," said Chief Executive Eric Lundberg. "After taking into account the ongoing development needs and operating costs of the remaining consumer business as a stand-alone public company, we believe this agreement represents the best way to maximize value to TheStreet shareholders." The stock's $5.68 closing price Tuesday reflects a $1.77-per-share cash distribution to shareholders in April and a 1-for-10 reverse stock split. The S&P 500 slipped 0.1% in morning trading.