CBS To Acquire CNET Networks
With all this talk about EA possibly acquiring Take-Two, we gamers are starting to realize that our industry is the same as any other business: big fish end up eating the little fish. It's just the way of the corporate world.
Today, it has been announced that CBS Corporation plans to acquire CNET Networks, home of the likes of GameSpot.com, ZDNet.com, Search.com, and many other sites. CBS is making an offer of $11.50 per share, which translates to about $1.8 billion, and if it goes through, this 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 CBS 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.
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."
The sites formerly under CNET's umbrella will be combined with CBS's set of sites, including CBS.com, CBSSports.com, CBSNews.com, etc. This is probably a good move for CNET, although we'll be interested to see what changes this brings about in GameSpot and other sites...if any.
"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 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."
5/15/2008 Ben Dutka