Street.com CEO quits after Cramer’s TV flameout

[babylonsister]

Street.com CEO quits after Cramer’s TV flameout

Thomas Clarke, longtime chief executive of the financial news Web site, abruptly leaves, “effective immediately.”

By Hilary Potkewitz


Friday brought more tumult for CNBC anchor Jim Cramer, when the chief executive of his online financial news site, The Street.com, resigned.

The company announced Friday that Thomas Clarke, TheStreet.com’s CEO for the past decade, would be leaving, effective immediately. He’s been temporarily replaced by Daryl Otte, a longtime director on the company’s board, who will serve as chief until the search committee, which he is leading, finds a new CEO.

Outsized TV personality and chairman of the board Jim Cramer issued a boilerplate statement on Mr. Clarke’s departure, saying only, “I want to thank Tom for his long-time service to the Company and wish him the best of luck in his future endeavors.”

The abrupt nature of Mr. Clarke’s departure only adds to the company’s troubles in the current bear market. Its stock dropped below $2 per share this week, down from $9.50 per share a year ago.

The stock in recent years had traded as high as $16 per share in December of 2007, but has suffered with the decline in the media and advertising markets. Its success was tied closely to Mr. Cramer’s popularity, and the recent heavy criticism of his bombastic television personality may be reflected in the company’s performance.

Mr. Cramer was one of the biggest cheerleaders for the bull market through his show Mad Money. Since the market’s collapse last year, he’s come under heavy criticism for encouraging investors to believe that firms such as Bear Stearns, Lehman Brothers, Wachovia and Citigroup were sound investments, when they were instead teetering on the edge of collapse.

more...

http://www.crainsnewyork.com/article/20090313/FREE/903139975

[cutlassmama]

1. And...here we go. I wonder how much longer

Cramer will be on T.V. Probably not much longer.

[yourout]

3. And deservedly so.

[dkf]

2. Cramer is in the same situation as the rating agencies.

To go on TV and broadcast "sell" may put already teetering organizations over the edge.

Especially financial institutions which experience runs on the bank.

Caught between a rock and a hard place.

[IntravenousDemilo]

4. Maybe if Bear Stearns had been named Bull Stearns, it wouldn't have gone under. n/m

[pinto]

5. Ouch. I'm unfamiliar with Cramer and the website, but have seen the stuff posted here.

Apparently Mr. Cramer was as overheated as the economy. Interesting fall out - and sad for all the people that have lost equity, pension funds etc. due to the hype.

[babylonsister]

6. I only know Cramer from the talking heads on m$nbc.

He was an occasional guest on HardBall, Scaborough, etc. And, of course, from his showdown with Jon Stewart.

Interesting that the website CEO is the first to go, and not someone connected with the cnbc program that probably influenced more people. Then again, maybe not. I'm with you, I don't watch it or log on there.