CBS buys CNET in $1.8 bln deal
Company boosts Web presence to U.S. top 10 status
By Georg Szalai

May 15, 2008, 08:01 AM

NEW YORK -- CBS Corp. will become a top 10 U.S. Internet company with a $1.8 billion deal to buy San Francisco-based CNET Networks and its popular online tech info and other sites.

CNET's online brands include CNET.com, ZDNet, GameSpot.com, TV.com, mp3.com, Search.com and TechRepublic.

CBS Corp. will make a cash tender offer for all shares of CNET for $11.50 per share. The acquisition will elevate the company's online reach to 54 million unique users per month and approximately 200 million users worldwide, it said.

"There are very few opportunities to acquire a profitable, growing, well-managed Internet company like CNET Networks," said CBS Corp. president and CEO Leslie Moonves. "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."

He suggested that growth could be accelerated through new content, promotion and advertising initiatives.

CNET was profitable and had revenue of $406 million last year and has a large international footprint, particularly in China.

"The core businesses of CNET Networks and CBS Interactive represent near perfect category symmetry in premium online content," said Quincy Smith, president, CBS Interactive.

He said his team would build new verticals of content after the close of the deal as well.

The transaction is expected to be completed in the third quarter.