Reuters : CBS to buy CNet
By Andrew Redfern @ 15th May 2008 4:04 pm
NEW YORK (Reuters) – CBS Corp said on Thursday it would buy web media company CNET Networks Inc for about $1.8 billion to boost the television broadcaster’s reach across the Internet.
The deal could also put to rest a brewing fight between CNET and an activist investor group led by hedge fund Jana Partners, which wants to shake up the Web company.
Once the purchase is completed, expected in the third quarter, CBS’s digital properties will be home to 54 million unique monthly users in the United States and about 200 million users worldwide, the companies said.
“When you can combine the entertainment assets, the news assets, the platforms that are available with technology, the cross advertising opportunities, it just gives us great scale,” CBS Chief Executive Leslie Moonves said on a conference call.
The deal values CNET at $11.50 per share and represents a 45 percent premium to its closing price on Wednesday.
CBS said it has not spoken with CNET’s activist investor group, which introduced last month a plan to boost earnings by reaching a partnership with Web search leader Google Inc, revamping its own search and adding social networking features to its sites.
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