CNET CEO Shelby Bonnie Resigns POSTED October 12, 2006 SAN FRANCISCO -- CNET Networks announced that its Board of Directors has unanimously appointed Neil Ashe as the Company's new chief executive officer and director effective immediately. Co-founder and chief executive officer Shelby Bonnie has resigned as chairman and CEO. Bonnie is leaving the company over backdating of stock options over the past decade. According to a company investigation, key findings of a Special Committee's report include: - There were deficiencies with the process by which options were granted at CNET, including in some instances the backdating of option grants, during the period from the Company's IPO in 1996 through at least 2003. - These deficiencies resulted in accounting errors, which the Company has previously announced will result in a restatement. - A number of executives of the Company, including the former CFO and the recently resigned CEO, General Counsel and SVP of Human Resources, bear varying degrees of responsibility for these deficiencies. - The report does not conclude that any current employees of the Company or any recently resigned employees engaged in intentional wrongdoing. - Since 2003, the Company has taken steps to remedy these deficiencies through personnel changes and improved internal controls. The Special Committee recommended a number of additional remedial measures. - The recently resigned executives and the directors who received improperly priced options have agreed voluntarily to have these options repriced to fair market value on the appropriate measurement date. Bonnie will remain a director with CNET. The Company also announced that Jarl Mohn has been named non-executive chairman of CNET Networks' Board of Directors. Mr. Mohn has extensive experience in the media and technology industries. He has previously served as president and chief executive officer of Liberty Digital, Inc., founding president and CEO of E! Entertainment Television, and executive vice president and general manager of MTV and VH1. "CNET Networks is known for building world class brands for people and the things they are passionate about. It's been an honor to work with Shelby as we have grown the company from its technology roots and moved into new categories like Entertainment, Food and Parenting," said Neil Ashe. "CNET Networks is a different kind of media company and we are committed to continuing to be pioneers in interactive content. We have been and will be innovators, and together with my colleagues worldwide, I am confident about what we can accomplish. Innovation is part of our DNA and will be fundamental to our success moving forward." Return to SVDaily Home Page © Copyright SVDaily.com

,