CBS to buy CNET for $1.75bn

Posted by Rob Beschizza, May 15, 2008 5:28 AM | permalink

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]

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Discussion

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#1 posted by acb

, May 15, 2008 8:03 AM

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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#2 posted by Enochrewt , May 15, 2008 8:27 AM

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

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#3 posted by Fnarf , May 15, 2008 9:40 AM

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?

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#4 posted by anutron

, May 15, 2008 11:36 AM

@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

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#5 posted by License Farm

, May 15, 2008 1:32 PM

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.

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#6 posted by Kurt , May 15, 2008 8:20 PM

#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.