Shares of TheStreet Inc. TST, +34.21% rocketed 32% to pace all Nasdaq gainers in very active afternoon trade Thursday, after the financial-news company, which was co-founded by markets commentator Jim Cramer, said it was selling its institutional business units for $87.3 million to Euromoney Institutional Investor PLC, and that Chief Executive David Callaway, a former MarketWatch editor-in-chief, will resign. Trading volume topped 12.1 million shares, compared with the full-day average of about 105,000 shares. The units being sold are the Deal and BoardEx, which reported revenue of $23.8 million in 2017, or about 38% of the company’s total revenue. Following the close of the sale, the company expects to reduce its costs and corporate overhead, given the reduction in overall headcount and operations. Succeeding Callaway as CEO will be Eric Lundberg, who will also continue in his role of chief financial officer. “The primary goal of our board and management team has always been to maximize shareholder value, and the sale of our B2B business to Euromoney is a unique opportunity to do just that,” Callaway said. The stock has still lost 7% over the past three months, while the Nasdaq Composite COMP, +0.42% has shed 10.5% and the S&P 500 SPX, -0.15% has given up 7.8%.
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