February 24, 1999 7:25 AM PST

CNET buys Winfiles.com

CNET announced today that it has entered into an agreement with Jenesys to purchase Winfiles.com, a software downloading service on the Internet, for $11.5 million in cash.

Under the terms of the agreement, CNET, which publishes News.com, will pay an initial installment of $5.75 million in cash at the closing of the transaction and a second payment of $5.75 million 18 months later.

WinFiles.com is a destination for users of Windows 95, 98, Windows NT, and Windows CE. Founded by Steve Jenkins in 1995, the site offers Windows shareware, freeware, and demo software for download.

CNET also recently acquired NetVentures, creator of ShopBuilder, an e-commerce software package that allows small and midsize computer manufacturers and resellers to build online stores at CNET and market their products directly to customers.

Also today, CNET announced its intention to raise $150 million through "convertible subordinated" notes. These notes will be convertible, at the option of the holder, into shares of CNET's common stock and will be non-callable for three years.

Proceeds from the so-called Rule 144A offering will be used for general corporate purposes, acquisitions, capital expenditures, and working capital.

The notes will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under such act.


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