CNET, the company that was worth $12 billion in 1999 is worth $1.8 billion 9 years later. Back then CNET was one of the websites I go to at an almost everyday basis. Everyday I’d visit at least one of those web sites, whether it is News.com or GameSpot.com or ZDNet. And later, GameFaqs too. Things start going for the worse recently with the rise of technology blogs such as Mashable, Techcrunch, Engadget and Gizmodo. All of a sudden, CNET loses its appeal. They haven’t been quick enough to get their news too, often tailing behind the blogs like Techcrunch.
CBS Acquires CNET For $1.8 Billion
CNET Networks, and all of its properties, including CNET, ZDNet, GameSpot.com, TV.com, CNET News, UrbanBaby, BNET, CHOW and Search.com, are being acquired by CBS for a total price of $1.8 billion.
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. This transaction will instantly propel CBS into one of the 10 most popular Internet companies in the US, with 54 million unique monthly users, and approx. 200 million users worldwide.
This doesn’t come as a complete surprise. CNET has had its share of troubles, and investors weren’t happy; in fact, recently a consortium of CNET investors was preparing for a takeover of CNET’s board of directors. CNET’s shares have been in the doldrums for quite some time now, and the shareholders have obviously found a desirable exit in a CBS acquisition. (Source: Mashable)
On other news, Wired bought Ars Technica.