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CBS to Pay $1.8 Billion for CNET Networks
| Quote : | "CBS said Thursday it would buy CNET Networks for $1.8 billion in cash, marking its biggest online acquisition since hiring Quincy Smith, a former media and technology investment banker, to lead its interactive unit in late 2006. The deal came as CNET, whose assets include a popular technology-news Web site, was trying to fend off a group of activist investors seeking to take control of its board of directors.
A year and a half ago, Leslie Moonves, the chief executive of CBS, sought to reassure Wall Street that his efforts to expand CBS's Web footprint would not include expensive acquisitions.
'We are not going to spend $1.6 billion on YouTube,' he told The New York Times, referring to the video-sharing site that Google had recently bought. 'We are looking for the next YouTube and Quincy knows all the players.'
Mr. Moonves now appears to have decided that CBS needs to spend at least that much to build out its Internet presence and make it attractive to advertisers.
'There are very few opportunities to acquire a profitable, growing, well-managed Internet company like CNET Networks,' he said in a press release Thursday. 'Together, CBS and CNET Networks will have significant additional exposure to the fastest-growing advertising sector and can accelerate our growth through a number of new content, promotion and advertising initiatives.'
CBS said Thursday it would pay $11.50 for each CNET share, a substantial 45 percent premium to where the stock closed on Wednesday.
During the dot-com boom, shares of CNET reached nearly $80, but the company's fortunes have fallen since then, and it recently announced layoffs.
A group of investors including the hedge-fund firm Jana Partners, unhappy with the company's recent performance and management, have been hoping to take control by getting their allies elected to the CNET board." |
http://mobile.nytimes.com/blogs/dealbook/23265
FYI. 5/15/2008 10:03:29 AM
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