CBS to buy CNET for $1.75bn

CBS has noticed the Internet. It is to pay $11.50 a share for CNET, which adds up to nearly $1.8bn, instantly turning it a big player in the tubes. Fortune says that’s a 44 percent premium over Wednesday’s closing price, which is basically them saying “Damn, this company is run terribly. Grab it!”

Here’s CEO Les Moonves.

“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.”

CBS shares down, CNET shares up 34 percent in early trading. In the distance, a dog barks.

CBS agrees to buy CNET [AP]

About Rob Beschizza

Rob Beschizza is the Managing Editor of Boing Boing. He's @beschizza on Twitter and can be found on Facebook too. Try your luck at besc...@gmail.com

 

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6 Responses to CBS to buy CNET for $1.75bn

  1. Enochrewt says:

    I LOLed at the “Damn, this company is run terribly. Grab it!” Now, this is commentary I can use.

  2. License Farm says:

    I wonder whether this augurs the return of C|Net the cable channel (or was it just a show on SciFi Channel?). It could be something more in the mold of G4. Or am I thinking too old media for this? Forgive me, it’s hard to not think “old” in reference to CBS.

  3. Fnarf says:

    I don’t understand corporate finance at all. What does CNet have to offer, again? Terrible product reviews? Aren’t there enough places for that already?

  4. Kurt says:

    #3: what CNET has to offer is the domain name “news.com”. I bet you that that within days of the deal being finalized, news.com will be the new home of what is now cbsnews.com, and you’ll see an advertising blitz to go along with it.

    Granted, it’s a lot to overpay for a domain name, but I am sure it was a big part of their thinking.

  5. anutron says:

    @ACB, just a side note: CNET didn’t junk the mp3.com stuff – vivendi did that: http://www.kuro5hin.org/story/2003/11/21/14616/561

  6. acb says:

    Hmmm. CNet was the company that bought mp3.com from Universal, junked all the content (flogging the music off to some sleazy piped-music company or other) and replaced it with something forgettable. CBS, meanwhile, owns last.fm. Perhaps a new mp3.com, powered by last.fm technology, is on the cards?

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