CBS to Buy CNET for $1.8 Billion

Mass media company CBS will acquire new media, technology-focused, online news company CNet Networks for $1.8 billion. CNET owns such Internet entertainment, news and information sites as CNET, ZDNet and GameSpot.com. CNET's sites will be combined with CBS's news and sports sites as well as CBS Radio and CBS Television Stations digital media platforms, and the distribution network of the CBS Audience Network, which is made up of more than 300 partner Web sites and reaches 82% of all U.S. online users. CNET shareholders will get $11.50 a share, a 45% premium to Wednesday's closing price and above any price at which the stock has traded in about two years. Shares of CNET soared 44% to $11.44 in recent trading, while CBS's stock fell 3.7% to $23.91. CNET is facing increased competition for users and online advertising dollars. The company's revenue rose 10% in 2007, to $405.9 million, but its reported profit was helped by a big tax benefit. CNET reported a loss of $6.1 million in the first quarter, as revenue rose slightly. Saul Hansell thinks CNet -- well respected, with some good technology and brands, but growing slowly -- makes CBS -- a company with well-known brands and sluggish growth -- "look sexier."
http://online.wsj.com/article/SB121085061416295095.html?mod=hps_us_whats_news
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* CBS in Deal to Buy CNet to Increase Online Ads (NYTimes)
http://www.nytimes.com/2008/05/16/business/media/16cnet.html?ref=todayspaper
* CBS to Acquire CNET for $1.8 Billion (Wall Street Journal)
http://online.wsj.com/article/SB121085061416295095.html?mod=todays_us_marketplace
* CBS Seeks Internet Buzz (Wall Street Journal)
http://online.wsj.com/article/SB121090838585697975.html?mod=todays_us_money_and_investing
* CBS Turns Its Eye to the Web, Landing Network of Tech Sites (Washington Post)
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/15/AR2008051501003.html
* CBS saves CNet from proxy fight (USA Today)
http://www.usatoday.com/printedition/money/20080516/cnet16.art.htm
* CBS to pay $1.8bn for CNET Networks (Financial Times)
http://www.ft.com/cms/s/0/bb224a2e-2271-11dd-93a9-000077b07658.html
* CBS agrees to buy Internet media firm CNET (LA Times)
http://www.latimes.com/business/printedition/la-fi-cbs16-2008may16,0,4925709.story
* Leslie Moonves' Poker Face And CBS/CNET (BusinessWeek)
http://www.businessweek.com/innovate/FineOnMedia/archives/2008/05/_leslie_moonves.html?campaign_id=rss_tech