Kotaku
CBS Corporation just announced an agreement to buy CNET for $1.8 billion dollars. Through the deal, all of CNET's network sites, including GameSpot, TV.com mp3.com, CNET news.com, UrbanBaby, CHOW, Search.com, BNET, MySimon and TechRepublic all become property of CBS.
CBS' existing online network already includes CBS.com, CBSSports.com, CBSCollegeSports.com, MaxPreps.com, CBSNews.com, last.fm, Wallstrip, MobLogic, and the CBS Radio and CBS Television Stations digital media
platforms. CBS says its distribution net, the Audience Network, comprises 300 partner sites and reaches 82% of U.S. web users.
"CNET Networks operates some of the most important premium online brands, serving the most sought after online audiences," said CNET CEO Neil Ashe. "Today's announcement brings together two organizations that complement each other and working with Leslie, Quincy and the talented people at CBS, we look forward to taking our business and our brands to the next level."
Full announcement follows the jump.
NEW YORK and SAN FRANCISCO, May 15 /PRNewswire-FirstCall/ — CBS Corporation (NYSE: CBS.A and CBS) has entered into an agreement to acquire CNET Networks, Inc. (Nasdaq: CNET), it was announced today by Leslie Moonves, President and Chief Executive Officer, CBS Corporation. Under the terms of the agreement, CBS will make a cash tender offer for all issued and outstanding shares of CNET Networks for $11.50 per share, representing an equity value of approximately $1.8 billion. 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 approximately 200 million users worldwide."There are very few opportunities to acquire a profitable, growing, well-managed Internet company like CNET Networks," said 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. Together, CBS and CNET Networks will have significant additional exposure to the fastest- growing advertising sector and can accelerate our growth through a number of new content, promotion and advertising initiatives. We could not be more pleased with the prospect of adding CNET Networks and its tremendous team of people to the CBS family. I look forward to working with Quincy Smith, Neil Ashe and the considerable combined talent at both companies, as we build upon our success."
Based in San Francisco, CNET Networks owns many of the Internet's leading entertainment, news and information sites including CNET, ZDNet, GameSpot.com, TV.com, mp3.com, CNET news.com, UrbanBaby, CHOW, Search.com, BNET, MySimon and TechRepublic. The company, which reported significant profits in 2007 on revenues of $406 million, has a large international footprint, particularly in China.
Upon closing, CNET Networks' sites will be combined with CBS's stable of dynamic and growing interactive businesses. These include CBS.com, CBSSports.com, CBSCollegeSports.com, MaxPreps.com, CBSNews.com, last.fm, Wallstrip, MobLogic, CBS Radio and CBS Television Stations digital media platforms, and the distribution network of the CBS Audience Network, which is made up of more than 300 partner Web sites and reaches 82% of all online users in the United States.
"The core businesses of CNET Networks and CBS Interactive represent near perfect category symmetry in premium online content," said Quincy Smith, President, CBS Interactive. "Together we will have a terrific opportunity to not only grow our established businesses, but to build new attractive verticals of content as well. This is the beginning of an era for both CBS and CNET Networks; plus, it's going to be great to work with Neil and his team, many of whom I have known for many years."
"We're thrilled to join CBS and combine our interactive media experience with CBS's world-class content," said Neil Ashe, Chief Executive Officer, CNET Networks, Inc. "CNET Networks operates some of the most important premium online brands, serving the most sought after online audiences. Today's announcement brings together two organizations that complement each other and working with Leslie, Quincy and the talented people at CBS, we look forward to taking our business and our brands to the next level."
"We look forward to completing the acquisition of CNET Networks and the terrific benefits it brings to CBS as Quincy, Neil and their combined teams build upon our success," Moonves concluded. "At the same time our strong cash flow allows us to pay among the highest dividends in the industry, and we are committed to continue to pay our attractive dividend to return value to shareholders."
The Board of Directors of CNET Networks has unanimously approved the merger agreement and unanimously recommends that CNET Networks stockholders accept the tender offer and tender their shares.
The transaction is subject to customary conditions and is expected to be completed in the third quarter of this year.
Comments
Well this sucks more corruption in the cnet circle. We need a gamefaqs2 imo.
In before: ZOMG, see Gamespot are teh sell outs
Meh, I'm not a gamespot guy to begin with. I couldn't care less.
Well, Ok I could, but barely.
Shit. CBS owning TV.com seems like a huge conflict of interest. I hope it remains as it is because I generally enjoy the site.
FREE JEFF GERSTMANN!!!
I gave up on Gamespot a long time ago...but I continue to fear for Gamefaqs.
Well this was unexpected... CBS of all people wanting CNET? Wow.
Yeah... I couldn't care less about CNET tbh.
Macdonalds could buy Gamespot for all i care.
Gotta Get'em all b'for them Dems get in office....
i used to be a gamespot reader, but then i discovered geekonstun, which exposed me to the sweet sweet world of video game blogs. speaking of which, mike mcm, are you ever gonna update that again? i remember checking for a year or so, only to be greeted by christie's vagina.
Despite what everyone's saying about GameFAQs CNET honestly has let CJayC and SBAllen have most of the control over the site. All they did was inject a few ads into the site.
I'm actually a little worried now that CBS might not let them have that same freedom, or worse, merge the sites completely together killing of GameFAQs in the process
sorry if this is already posted, it's not showing up...anyway, i used to be a gamespot reader, but then i discovered geekonstun which exposed me to the sweet sweet world of video game blogs. speaking of which, michael mcwhertor, are you ever gonna update anymore? i remember checking back for a year or so, only to be greeted by christie's vagina for the longest time.
Sumner Redstone is starting to making Rupert Murdock look like a chump.
Huhbutwha?
@ca$h: Agreed. And I was never a Cnet guy myself really.
Have to love convergence.
Have to.
Should.
Okay, it sucks.
The next C.S.I. game will get a 10 from gamespot.
Book it.
Screw Gamespot, I just hope this doesn't screw GameFAQs over.
CNET work 1.8 Billion?
Really?
Huh...okay then.
Gamespot would also like to announce that their rating for the CSI video game has changed from a 5.1 to a 10. They would like to apologize for their mistake, it's actually the best game ever.
@Nihon no Purin: You have to give it a minute, sometimes comments don't show up right away but they're there.
So, what does this mean for us? That Gamespot is going to suck more? Oh well, I avoid Gamespot like the plague. In a world of Kotaku, Metacritic and forums, there's no need.
@silkylove: Dang, you beat me to it. :(
I wonder if this is just for financials or something else?
I think I'm gonna go acquire me an ice cold Coors.
last.fm kept on going as normal after CBS bought it.
See B.S. -- That's all I have to say.
the sad part is gamespot might become better. You know they actually might now have some professionalism and actually make some non half assed reviews. Bah! Who am I kidding they are just gonna get lamer.
So lets see, Fox ones the IGN networks, and CBS now owns CNET. Definitely no objective sources on these fronts.
@CaptMonkey:
ROFL
@FightingChance: nice diss I kept thinking all day...doesn't Kotaku knows kids go to this site....
Then I remember i like Coors...
back on topic....I really don't care (except for gamefaqs, I gave up on GS last October after they kicked me out of their forums for cursing...good thing i can say fuck whenever the fuck i want.... FUCK), who knows CBS might make it better.......hahahahahhaha!!!
I wonder if this means we'll see a Gamespot channel or a Gamespot hour-long show?
Final nail in Gamespot's coffin.
Oh gamers, so clueless and yet so opinionated :(
These media conglomerates are sure scared shitless of their competitors being in the online space to the point they feel they need to acquire these portal networks and their subscriber base to stay relevant .
Maybe all the writers left because they knew CBS was purchasing the parent company.
@Acid Raven: remember when On the Spot was good.....thank god Ryan left before everything went downhill...
Hm... hope they dont screw up CNET... I still remember when CNET bought Mp3.com... it was the end of the best music site ever made on the internet... good time where I used to have 100 of my tracks for free hosted there... good times, indeed.
I didn't know CBS liked corrupt review sites!
@KirbySS: I hear ya, sir, I hear ya...
@CaptMonkey: Ah, its funny because it will be true! Yes indeed...
Anyone else remember when mp3.com was good? It was like myspace music four years before myspace music existed.
If they merge and thus ruin GameFAQs, I will pull all of my contributions and I have many there including hundreds of screenshots. As well as reviewws, FAQs, codes, and others and I hope everyoneelse does too.
don't you CBS jerks ruin gamefaqs!
The entire CNET family of sites suck for anyone who's a tech or game enthusiast, they're clearly aimed at the mainstream who need a quick cellphone or laptop review before purchasing.
media consolidation ftl
more power more greed more BS
$1.8 billion for that lot? What a waste of moneys!
So... cnetbs.com? Makes sense to me
I haven't actually posted on the GameFAQs boards in ages, but the site's essentially a giant mob of bored fourteen year old boys. CBS isn't gaining much from that part of the acquisition, and given that most of their content is user-generated I wouldn't count on too many changes.
@Inhocmark: Keep in mind it's for their entire network. It still seems high to me, but there's a lot of high-traffic websites included in that package.
@Jeff Paine: CJayC actually isn't involved in the site anymore, apparently: [boards.gamefaqs.com]
Well, goodbye gamefaqs, guess I'll have to go somewhere else for my cheap on-line strategy guides.
@Mr.Waffleton: How, exactly, will merging ruin the site?
Instead of being owned by a corporate giant, it'll now be owned by a BIGGER corporate giant? I can almost guarantee that CBS isn't going to start mucking around with GameFAQs for the hell of it; at least in the short term, there probably won't be any noticeable changes at all.
What a wonderful stable of crap web sites to complement their crap programming.
For GameFAQs, it's the same old CNet again. I doubt they will even touch the site though, if an internet savvy corporation were too scared to mess around with GameFAQs, what the hell is CBS going to do?
@Sparx: What do you think CBS is going to do to ruin Gamefaqs?
How exactly does buying a business like this happen? Does the whole 1.8 billion go to one guy. Does the owner, lets say bob. sit in a room with the owner of another company saying, "ok, heres your company, wheres my cheque?" lol
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