AFI BLOG: Media and Technology

Red Herring

CBS on Thursday agreed to acquire pioneering Internet media company CNET Networks for $1.8 billion in cash.

“There are very few opportunities to acquire a profitable, growing, well-managed Internet company like CNET Networks,” CBS CEO Leslie Moonves said in a statement.

Shares of CNET gained $3.46, or 43.52 percent, to $11.41 by closing trading.

The deal comes after intense speculation over the continued independence of the company and a battle for the board of the Internet media behemoth.

The San Francisco company operates such sites as News.com, GameSpot.com, TV.com, mp3.com, UrbanBaby, CHOW, Search.com, BNET, MySimon, TechRepublic, and ZDNet. CNET agreed to acquire rival Ziff-Davis for $1.6 billion in July of 2000.

CBS plans to roll the various CNET Networks destinations into its network of sites including CBS.com, CBSSports.com, CBSCollegeSports.com, MaxPreps.com, CBSNews.com, and others.

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