• by Wayne Friedman , May 16, 2008

CBS will broaden its Internet-owned business with an agreement to buy CNET Networks for $1.8 billion cash.

CNET Networks owns entertainment, news and information sites, including CNET, ZDNet, GameSpot.com, TV.com, mp3.com, CNET news.com, UrbanBaby, CHOW, Search.com, BNET, MySimon and TechRepublic. In 2007, CNET reported revenues of $406 million.

This acquisition adds to the CBS portfolio of Web businesses: CBS.com, CBSSports.com, CBSCollegeSports.com, MaxPreps.com, CBSNews.com, last.fm, Wallstrip, MobLogic, CBS Radio and CBS Television Stations digital platforms.

CBS says the addition of CNET will place it among the top 10 of all Internet companies, with a combined 54 million unique users per month and approximately 200 million users worldwide. A key piece of the deal is CNET's strong business in China, which is highly profitable.

CNET Networks will help build CBS' distribution network of the CBS Audience Network, which is made up of more than 300 partner Web sites, reaching 82% of all online users in the United States.

As Quincy Smith, president of CBS Interactive, said during the CBS TV upfront programming presentation on Wednesday, the network will continue to offer its TV shows and other video to prospective partners on a nonexclusive syndication basis.