Old media meets new media: CBS buying CNET for $1.8B
Media and entertainment company CBS Corp. is buying online news and information provider CNET Networks Inc. for $1.8 billion US in cash, the two companies announced Thursday.
The proposed offer would expand the online reach of one of the U.S.'s most venerable media companies and also gives it ownership of CNET's host of desirable domain names, including news.com, tv.com, mp3.com and download.com.
CNET, an early pioneer on the internet, has a stable of news and information websites, including the CNET technology news website as well as video game website GameSpot.com.
The price of $11.50 US a share is a massive 45 per cent premium over CNET's closing stock price on Wednesday. CNET shares jumped $3.48 US, or 44 per cent, to $11.43 US in morning trading Thursday, while CBS shares dropped down 89 cents, or 3.6 per cent, to $23.93 US.
CBS CEO Leslie Moonves said during a conference call the acquisition was part of the company's move to get more of its content available online.
"Our idea is to have our content wherever, whenever you can get it, and adding CNET just makes that happen faster," Moonves said.
CBS online properties already include CBS.com, CBSSports.com and CBSNews.com. The company said the acquisition would make CBS one of the 10 most popular internet companies in the U.S., with 54 million unique visitors a month and approximately 200 million uses worldwide, CBS said.
The acquisition is expected to close in the third quarter after shareholder and regulatory approval.
The deal comes as a group of CNET investors led by hedge fund Jana Partners LLC has led a proxy fight to install a new slate of directors elected to CNET's board after the company's shares fell sharply in the last year.
With files from the Associated Press
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