Around the Net

CBS To Acquire CNET For $1.8 Billion

The long proxy battle between CNET and hedge fund Jana Partners looks to be over, as The Wall Street Journal early Thursday reported that CBS Corp. has agreed to buy the online news network for $1.8 billion. The price represents a premium of 45% over Wednesday's closing and is higher than any price the stock has traded at in over two years. The news sent CNET's stock up 42% in premarket trading to $11.30. CBS fell 3% to $24.10.

CBS said the deal, which is expected to close in the third quarter, would make it one of the 10 most popular Web companies in the U.S., with 54 million unique users per month in the U.S. and approximately 200 million worldwide. "There are very few opportunities to acquire a profitable, growing, well-managed Internet company like CNET Networks," CBS President and CEO Leslie Moonves said. He added that the move gives CBS a much broader global reach, especially in fast-growing regions like China.

San Francisco-based CNET owns Internet-based entertainment and news sites like CNET, ZDNet and GameSpot.com. CNET will join CBS's own news and sports sites as part 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.

Read the whole story at The Wall Street Journal »

Next story loading loading..