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CBS Buys CNET Networks for $1.8 BillionPOSTED May 15, 2008 SAN FRANCISCO and NEW YORK -- CBS Corporation said it plans to acquire CNET Networks, a publisher of technology news and information. Under the terms of the agreement, CBS will make a cash tender offer for all issued and outstanding shares of CNET Networks for $11.50 per share, representing an equity value of approximately $1.8 billion. The acquisition will make CBS one of the 10 most popular Internet companies in the United States, with a combined 54 million unique users per month, and approximately 200 million users worldwide. CNET has long been rumored as an acquisition target but CBS' purchase is a bit of a surprise. "There are very few opportunities to acquire a profitable, growing, well-managed Internet company like CNET Networks," said CEO Chief Executive Officer Leslie Moonves. "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. We could not be more pleased with the prospect of adding CNET Networks and its tremendous team of people to the CBS family." Based in San Francisco, CNET Networks owns many of the Internet's leading 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. The company, which reported significant profits in 2007 on revenues of $406 million, has a large international footprint, particularly in China. Upon closing, CNET Networks' sites will be combined with CBS's stable of dynamic and growing interactive businesses. These include CBS.com, CBSSports.com, CBSCollegeSports.com, MaxPreps.com, CBSNews.com, last.fm, Wallstrip, MobLogic, 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 online users in the United States. "We're thrilled to join CBS and combine our interactive
media experience with CBS's world-class content," said Neil
Ashe, Chief Executive Officer, CNET Networks, Inc. "CNET
Networks operates some of the most important premium online brands,
serving the most sought after online audiences. Today's announcement
brings together two organizations that complement each other
and working with Leslie, Quincy and the talented people at CBS,
we look forward to taking our business and our brands to the
next level." © Copyright SVDaily.com |
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