CBS to buy CNET Networks

CBS has agreed to acquire CNET Networks in a deal valued at $1.8 billion, the companies said Thursday.

The purchase price comes to $11.50 per share, representing a 44 percent premium over Wednesday's closing price of $7.95.

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 about 200 million users worldwide, the companies said.

The deal is expected to close in the third quarter. CNET's board has unanimously approved the deal, the company said.

Based in San Francisco, CNET Networks-owned sites include CNET, ZDNet, GameSpot, TV.com, MP3.com, CNET News.com, UrbanBaby, CHOW, Search.com, BNET, MySimon, and TechRepublic.

CNET Networks, News.com's publisher, recently announced a partnership with Yahoo to provide technology news and reviews to the search company. The companies also agreed to allow Yahoo to sell display ads on CNET properties and for CNET to sell ads alongside the content it provides on Yahoo sites.

CNET has been involved in a fight over control of its board with Jana Partners.

[microg]

I have been trying to find the best way to describe how I feel about CBS acquiring CNET. I have decided to use the following analogy.

Media Company Before CBS acquires it = Grilled T-Bone Steak
Same Media Company After CBS acquires it = Salsbury Steak TV-Dinner

It still taste ok but no where near as good as before.

[M C]

I would argue that CNet ground its former steak into hamburger years ago. From their "blog network" of unqualified but incendiary bloggers to their frequent flame bait headlines to its firing of Gerstmann, CNet has descended far from its '90s heyday as a true tech news source.

[Imalittleteapot]

I don't think I like this.

[Commander_Spock]

This would be like - "Making Every Day Feels Like Christmas" for CNET NEWS Readers. You know what they say - "Oldies But Goodies" Right On 101.10! It Would be nice to click on those "Sunday Night's Oldies" every day while the surfing CNET NEWS's site.

[Randall_Lind]

Only thing good about CBS is ShowTime. I love Dexter even through CBS tries to ruin it by putting it on CBS.

Last.FM is still great and it was brought last year by CBS.

[ultrabob]

There goes the nabourhood. . .

[Len Bullard]

This will work well. CNet needs something in the TV media and CBS needs some west coast cred.

OTOH, with the coming demise of the silicon valley stranglehold on things technology as the europeans and the pacific rim move in to break up the hegemonies, it will tough to grow at a decent rate.

[JCPayne]

I'm trying to figure out how to feel. In some ways-- I think CNET became a little bit complacent after the hostile takeover of Ziff Davis ( www.ZDNet.com) due to less perceived competition, but at the same time CNET still kinda has some things going for it. I can't quite fathom what will happen with the CBS component I sort of feel indifferent towards them but I think CNET probably could have done some cool stuff if Google had acquired them and pushed CNET/Google inspired technology television.

[innocentric]

It's rather like a rich man paying thousands for a high-class callgirl - you're happy for the working girl, but for the john - not so much.

[fafafooey]

The network of Dan RaTHer and Komrade Katie Couric buys CNet - now it really will be DNCNet.com. Expect even more left wing biased pro-Democrat news on here...

[M C]

"I make up crap that isn?t true then I say it on TV. I?m like Fox News." - Craig Ferguson.

[rexworld]

It will be interesting to see if CNET is integrated at all with the broadcast side or if it was purchased strictly for the Internet side. There's some good cross-promotional opportunities if they do it right.

For example, I think CNET actually does pretty good car tech reviews -- those would make great segments on various CBS shows. And come Christmas time, I would expect to see CNET reviewers pop up on CBS shows talking about hot tech toys for the holidays, that kind of thing.

[faust]

About time my CNET stock is worth something. Today is a good day!

[Orion Blastar]

I for one welcome our new CBS Overlords.

Even if 20 years ago, Mad Magazine said that CBS stood for Countless Bad Shows. Even CW and Fox beats CBS in ratings apparently.

How long before CBS ruins CNet and then sells it to Microsoft?

[GrahamNY]

I'm excited for CNET Miami and CNET Las Vegas.

[thenet411]

Remember what happened to Ghost when Symantec bought it? An easy to use, well written piece of software became a bloated, useless piece of junk. Nuff said.

[Ed from Texas]

So, when are Screen Savers and Call for Help coming back?

[wil2liv]

I'll be unsubcribing today. I won't be able to handle seeing the left wing slant that will start tainting the news reports. I've always looked forward to reading my News.com morning dispatch and now I might as well just subscribe to moveon.org.

[Orion Blastar]

I don't see how CBS left-wing slant is any different from the CNet left-wing slant that CNet already had before CBS bought them out? Most of the Internet is full of left-wing slant web sites. Hardly any moderate, libertarian, independent, but at least there are some conservative web sites that try to balance out the left-wing slants.

[snodman]

It has been no secret that CNET was for sale. Of all the possible marriages that could have been arraigned I like CBS/CNET the best. Think of a Fox News/CNET or MSNBC/CNET just for a second and you will likely agree. Look at the freedom CBS has given Lindsay Campbell - I can't imagine her video blog would cut it at a Rupert Murdock company.

[MedicineHead]

"Look at the freedom CBS has given Lindsay Campbell - I can't imagine her video blog would cut it at a Rupert Murdock company." I think that's exactly the reason why others here are already prepared to stop visiting this site. Her video blog revels in its pro-left slant. While I don't claim that her video blog is required to be fair or objective, its slant and inaccuracy isn't what I would want to see, hear, or read in my news.

[timcoyote]

A real shame. I've been a daily CNET user for over 10 years but there is no way this will equate to an improvement. But maybe it's time to retire my daily regiment.. Good luck to the staff of CNET, I hope you all are able to keep your jobs or find better ones.

[miguelg4472]

I will keep my eye on this development, but if i see any biased pro-Democrat support I will be moving somewhere else for my tech news.

[awinn233]

What the hell, CNET is not a political news website, but a technology review website. I don't see how a liberal political view would bias in any way their technology reporting. The more worrying aspect of this deal to me is CNET's objectivity when reporting on CBS news or products.

[open-mind]

Each year I notice more and more overlap between politics and technology. Taxing of sales over the internet? Public surveillance cameras that transmit over IP? Far left-wingers that want to take over companies like Yahoo? I see lots of overlap.