SAN FRANCISCO – U.S. network CBS agreed last week to buy CNET Networks, an Internet media company, for $1.8 billion in cash.
Under the agreement, CBS will pay $11.50 per share for all issued and outstanding shares of CNET Networks, which owns entertainment, news and information websites such as CNET.com, ZDNET.com, mp3.com, GameSpot.com, TV.com, UrbanBaby.com, and TechRepublic.com.
A CBS media release issued on May 15 notes the acquisition will make the company one of the 10 most popular Internet companies in the United States, with a combined 54 million unique users per month, and about 200 million users worldwide.
“There are very few opportunities to acquire a profitable, well-managed Internet company like CNET Networks,” said CBS President and CEO Leslie Moonves in a statement. “CBS stands for premium content and unparalleled reach, and CNET Networks will add a tremendous platform to extend our complementary entertainment, news, sports, music and information content to a whole new global audience. 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 that once the deal closes, CNET Networks’ sites will be combined with CBS’s growing interactive businesses, including CBS.com, CBSSports.com, CBSCollegeSports.com, MaxPreps.com, last.fm, CBS Radio and the digital media platforms of the CBS Television stations.
“The core businesses of CNET Networks and CBS Interactive represent near perfect category symmetry in premium online content,” said CBS Interactive President Quincy Smith. “Together we will have a terrific opportunity to not only grow our established businesses, but to build new attractive verticals of content as well. This is the beginning of an era for both CBS and CNET Networks…”
Currently embroiled in a proxy fight against a dissident shareholder group, CNET has a large international footprint, particularly in China.
The deal was unanimously approved by CNET Network’s board of directors, who are recommending that CNET Networks’ stockholders accept the tender offer and tender their shares.
“We’re thrilled to join CBS and combine our interactive media experience with CBS’s world-class content,” CNET Networks CEO Neil Ashe said in a statement.
