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Well, this was extremely unexpected, and somewhat disheartening to hear. Just minutes ago, CBS Corporation announced that they have entered into an agreement to acquire the C|NET network and of course, resignation-ridden outlet, GameSpot. CBS has offered a total of $1.8 billion for the acquisition, which includes CNET, ZDNet, GameSpot.com, TV.com, mp3.com, CNET news.com, UrbanBaby, CHOW, Search.com, BNET, MySimon and TechRepublic.
Once completed, all of the aforementioned websites will be inducted into CBS's online network - which they say has 54 million unique users per month, and roughly 200 million users worldwide. Leslie Moonves, President and Chief Executive Officer, CBS Corporation says:
There are very few opportunities to acquire a profitable, growing,
well-managed Internet company like CNET Networks. 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. I look forward to working with Quincy Smith,
Neil Ashe and the considerable combined talent at both companies, as we
build upon our success.
The only thing currently holding up the acquisition is C|NET's collection of stockholders. The company's Board of Directors have "unanimously" approved the move; so it's more of a "when", rather than an "if". It's expected that the acquisition will be completed in Q3 of 2008. Hearing the mention of even more advertising, I already cringe at the thought of what may happen to GameSpot...again. Hopefully, CBS can make this work without compromising the remainder of the outlet's integrity.
Full anouncement after the jump.
NEW YORK and SAN FRANCISCO, May 15 /PRNewswire-FirstCall/ — CBS
Corporation (NYSE: CBS.A and CBS) has entered into an agreement to
acquire CNET Networks, Inc. (Nasdaq: CNET), it was announced today by
Leslie Moonves, President and Chief Executive Officer, CBS Corporation.
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.
"There are very few opportunities to acquire a profitable,
growing, well-managed Internet company like CNET Networks," said
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. I look forward to working
with Quincy Smith, Neil Ashe and the considerable combined talent at
both companies, as we build upon our success."
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.
"The core businesses of CNET Networks and CBS Interactive represent
near perfect category symmetry in premium online content," said Quincy
Smith, President, CBS Interactive. "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; plus, it's going to be great to
work with Neil and his team, many of whom I have known for many years."
"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."
"We look forward to completing the acquisition of CNET Networks and
the terrific benefits it brings to CBS as Quincy, Neil and their
combined teams build upon our success," Moonves concluded. "At the same
time our strong cash flow allows us to pay among the highest dividends
in the industry, and we are committed to continue to pay our attractive
dividend to return value to shareholders."
The Board of Directors of CNET Networks has unanimously approved
the merger agreement and unanimously recommends that CNET Networks
stockholders accept the tender offer and tender their shares.
The transaction is subject to customary conditions and is expected to be completed in the third quarter of this year.
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