CBS announced today that is acquiring CNET Networks Inc., for $1.8 billion, at $11.50 per share.
CNET, which holds the coveted news.com domain name, operates a range of web sites, including CNET, ZDNet,
GameSpot.com, TV.com, CHOW and Search.com.
Leslie Moonves
As Dealbook notes today, CBS chief Leslie Moonves said a year and a half ago that the company wasn’t interested in pricy web acquisitions. “We are not going to spend $1.6 billion on YouTube,” he said then, referring Google’s purchase of the video site.
Moonves has apparently changed his mind. In today’s press release, he says, “There are very few opportunities to acquire a profitable, growing, well-managed Internet company like CNET Networks.”
Jana Partners LLC, CNET’s largest shareholder, had pushed for a higher stock price. Jana has not yet responded publicly to the CBS announcement.
The deal may affect content distribution for other web publishers. CNET currently provides content to Hulu, a subsidiary of NBC.
The purchase will bring significant online traffic to CBS. In the fourth quarter of 2007, CNET claimed 148 million unique users per month. The company also boasts a strong presence in Asia and Europe.
CNET, one of the early publishers on the web, was founded by Shelby Bonnie, who stepped down after an internal audit found back-dating of stock options. Bonnie went on to found Political Base.
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