Menu
CBS to buy CNET Networks for $1.8 billion

CBS to buy CNET Networks for $1.8 billion

CBS announced Thursday it will buy CNET Networks for US$1.8 billion in cash

CBS has agreed to pay US$1.8 billion in cash for online media company CNET Networks in a deal that has the backing of both companies' boards.

The acquisition will increase the total of unique monthly visitors to CBS Web sites to around 200 million worldwide, CBS said. CNET online brands include CNET, GameSpot, TV.com, BNET, CHOW, ZDNet and TechRepublic.

CNET was the target of a hostile bid from investment fund Jana Partners in January. The investment fund, CNET's largest shareholder, sought to nominate two members to the company's board.

The CBS statement announcing the deal described CNET as profitable, but the company had a net loss of US$6.1 million on revenue of $91.4 million in the first quarter. That was less than the US$9.1 million the company lost in the year-earlier quarter, but the company's operating loss widened from $7.7 million in the first quarter of 2007 to $18 million this year, including restructuring charges of $5.1 million.

For the full year 2007, CNET's net income totaled US$176.8 million -- including a $184.2 million income tax benefit.

CBS expects to close the deal in the third quarter. Its offer price of US$11.50 per CNET share represents a premium of 45 percent over Wednesday night's closing price of $7.95. CNET shares were trading at $11.33 a half hour before markets opened Thursday morning.


Follow Us

Join the newsletter!

Error: Please check your email address.

Featured

Slideshows

Looking back at the top 15 M&A deals in NZ during 2017

Looking back at the top 15 M&A deals in NZ during 2017

In 2017, merger and acquisitions fever reached new heights in New Zealand, with a host of big name deals dominating the headlines. Reseller News recaps the most important transactions of the Kiwi channel during the past 12 months.

Looking back at the top 15 M&A deals in NZ during 2017
Kiwi channel closes 2017 with After Hours

Kiwi channel closes 2017 with After Hours

The channel in New Zealand came together to celebrate the close of 2017, as the final After Hours played out in front of a bumper Auckland crowd.

Kiwi channel closes 2017 with After Hours
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP honoured leading partners across the channel at the Partner Awards 2017 in New Zealand, recognising excellence across the entire print and personal systems portfolio.

Meet the top performing HP partners in NZ
Show Comments