In a series of letters, Spear Point challenges the company to rework its current structure, including maximizing value for the Common Shareholders. Part of that means going after Jim Cramer, host of CNBC‘s Mad Money and a Co-founder and Chairman of TheStreet, Inc., who co-CEO Ron Bienvenu and team believe is overpaid and underperformed.
The most recent letter equates Cramer to an overpaid baseball player who has failed to deliver for shareholders. “…If Mr. Cramer were a player on the New York Yankees, his talent and fame would be marginally interesting. To play in the Major Leagues you must contribute to your team’s success. Mr. Cramer has failed over the years to do that for his team, TheStreet, and its Steinbrenners, the shareholders.”
The letter states Cramer’s presence on CNBC is becoming directly competitive to TheStreet because he has received over $13 million in cash compensation and other benefits from 1999 to 2012 while remaining spread thin from work with both companies.
Cramer’s salary has not changed even though TheStreet’s market capitalization has dropped from $560 million in 2008 to $65.7 million today. The company will report third-quarter results on Thursday, November 7th, 2013.
Spear Point owns over 2% of TheStreet’s common stock and strongly believes that the company would significantly increase in value if it were to address its capital structure deficiencies. Beyond this, Spear Point hopes to acquire a number of companies and relocate some or all operations to lower cost areas such as New Orleans.
“I think what we can build here in New Orleans, it can rival anything on Wall Street,” Bienvenu said. “The quality of life is great. The people are great.”
Spear Point has another venture in the works. The company is launching a television show, filmed in New Orleans, which will discuss the earnings of TheStreet, in addition to other Wall Street companies, beginning November 11th.