As is Keith J. Kelly’s wont, the New York Post media critic fired off several impressive scoops at the near-end of a weekday evening, in this case just ahead of Wednesday’s print editions. One involves Vice Media reportedly telling Jann Wenner no, thanks re: US Weekly; another is about the long-delayed repayment of a Forbes family loan; and the third pertains to online content pioneer Salon Media.
According to Kelly’s sources, Salon is finalizing a deal with Spear Point Capital:
It won’t take much cash for Spear Point to buy a controlling stake in Salon. The 22-year-old digital publishing enterprise, which has been plagued by high-level turnover on the executive and editorial side—as well as declining revenue—has a market capitalization of only $6.1 million and a stock price of 8 cents a share.
At its IPO in 1999, its stock was $10.50 a share with a market cap of $105 million.
Spear Point chief Ron Bienvenu declined to comment to Kelly specifically about the firm’s interest in Salon Media. Lots more good stuff in the article. Read the rest of Kelly’s report here.
Update (Jan. 26):
Kelly says the deal is now done and will be officially announced Friday.
Update (Jan. 27):
Kelly got one very important detail wrong. The stake acquired by Spear Point is a minority one (29%).