CBS Agrees to Purchase Cnet Networks for $1.8 Billion - GoFuckYourself.com

Barefootsies · 05-15-2008, 11:55 AM

May 15 (Bloomberg) -- CBS Corp. agreed to buy Cnet Networks Inc., a technology news provider, for about $1.8 billion to become one of the 10 largest Web site companies.

Cnet investors will receive $11.50 a share, or 45 percent more than yesterday's closing price, the companies said in a statement today. CBS, based in New York, will combine its news, entertainment and sports Web sites with Cnet sites including ZDNet, GameSpot.com, TV.com, Chow and Search.com.

CBS Chief Executive Officer Leslie Moonves is buying a profitable business that increased sales 10 percent last year to $405.9 million as he seeks acquisitions to make up for a drop in television and radio advertising. CBS shares fell as much as 5 percent on investor concern the company is paying more than 100 times Cnet's estimated earnings for fiscal 2008.

``Given the growth performance by Cnet, the price is too rich,'' said Robin Diedrich, an analyst at Edward Jones & Co. in New York. She recommends investors hold CBS shares and doesn't own any. ``It's a bold move by CBS management given their position, because the company is struggling for growth.''

Cnet, based in San Francisco, jumped $3.45, or 43 percent, to $11.40 at 2 p.m. New York time in Nasdaq Stock Market trading. CBS declined 73 cents, or 2.9 percent, to $24.09 in New York Stock Exchange composite trading.

Proxy Fight

Cnet agreed to the takeover as it tries to fend off a looming proxy fight with Jana Partners LLC, its largest shareholder. The activist hedge fund, founded by Barry Rosenstein, called for a change in strategy as the stock lost about half its value over a two-year period.

Jana is reviewing the CBS transaction, spokesman Charles Penner said. Last month, the New York-based fund rejected an offer from Cnet to give it a seat on its board.

Cnet's main Web site focuses on technology news, consumer advice and reviews of products such as mobile phones and computers. In total, the company's sites were the 16th most visited in the U.S. in March, drawing 34.6 million unique visitors, according to researcher ComScore Inc. CBS had 28.6 million unique visitors, ranking it 24th.

``They offer us significant exposure to the fastest-growing advertising sector,'' Moonves said on a conference call today. ``We have taken a major leap forward to become a top 10 Internet company for the future.''

`Fits Nicely'

Digital distribution of television programs and movies will result in ``rich and recurring value,'' CBS Chairman Sumner Redstone said in a February speech. Viacom Inc., the other company he controls, has built up the Web sites for its MTV and Comedy Central to become the 13th most visited U.S. Internet property, according to Reston, Virginia-based ComScore.

``We're always looking for strategic acquisitions in higher growth businesses,'' Redstone said today in a statement. ``The Cnet acquisition nicely fits with that strategy.''

The price is 18 times Cnet's 2008 estimated earnings before interest, taxes, depreciation and amortization, Jason Bazinet, an analyst at Citigroup Inc. in New York, wrote today in a note. By comparison, he said shares of Bankrate Inc. trade at 12 times estimated earnings and WebMD Health Corp. trades at 14 times.

CBS had $2.26 billion in cash at the end of the first quarter. The acquisition, expected to close in the third quarter, won't threaten future dividend increases, Moonves said in an interview. Last month CBS raised its quarterly dividend to 27 cents, a two-cent increase.

Web Growth

On the company's earnings conference call April 29, Moonves forecast that online revenue will top $50 million this year from about $30 million in 2007. CBS had total revenue of $14.1 billion last year.

Cnet will help CBS sell online advertising and adds complementary Web sites such as TV.com that will be combined with CBS Audience Network, the broadcaster's Internet operation, Moonves said in an interview. Once the acquisition is completed, CBS will create a new combined Internet division that will be headed by Quincy Smith, president of CBS Interactive.

Smith joined CBS in 2006 from the investment bank Allen & Co., where he arranged transactions including AOL's acquisition of Advertising.com and Viacom's purchase of NeoPets.

``Our advertising base is very different than their advertising base,'' Moonves said. ``It's about content on the Web, what works, what doesn't work and how you monetize it.''

http://www.bloomberg.com/apps/news?p...sJE&refer=home

StuartD · 05-15-2008, 12:11 PM

http://www.gfy.com/fucking-around-and-business-discussion/828613-cbs-corporation-acquire-cnet-networks-inc.html

CaroMark · 05-15-2008, 12:16 PM

Should be an awesome growth move for them!

NinjaSteve · 05-15-2008, 02:20 PM

Isn't that less than what Vitamin Water was sold for? Less than what Facebook will probably sell for? The world is a f'd up place.

05-15-2008, 11:55 AM	#1
Barefootsies Choice is an Illusion Industry Role: Join Date: Feb 2005 Location: Land of Obama Posts: 42,635	CBS Agrees to Purchase Cnet Networks for $1.8 Billion May 15 (Bloomberg) -- CBS Corp. agreed to buy Cnet Networks Inc., a technology news provider, for about $1.8 billion to become one of the 10 largest Web site companies. Cnet investors will receive $11.50 a share, or 45 percent more than yesterday's closing price, the companies said in a statement today. CBS, based in New York, will combine its news, entertainment and sports Web sites with Cnet sites including ZDNet, GameSpot.com, TV.com, Chow and Search.com. CBS Chief Executive Officer Leslie Moonves is buying a profitable business that increased sales 10 percent last year to $405.9 million as he seeks acquisitions to make up for a drop in television and radio advertising. CBS shares fell as much as 5 percent on investor concern the company is paying more than 100 times Cnet's estimated earnings for fiscal 2008. ``Given the growth performance by Cnet, the price is too rich,'' said Robin Diedrich, an analyst at Edward Jones & Co. in New York. She recommends investors hold CBS shares and doesn't own any. ``It's a bold move by CBS management given their position, because the company is struggling for growth.'' Cnet, based in San Francisco, jumped $3.45, or 43 percent, to $11.40 at 2 p.m. New York time in Nasdaq Stock Market trading. CBS declined 73 cents, or 2.9 percent, to $24.09 in New York Stock Exchange composite trading. Proxy Fight Cnet agreed to the takeover as it tries to fend off a looming proxy fight with Jana Partners LLC, its largest shareholder. The activist hedge fund, founded by Barry Rosenstein, called for a change in strategy as the stock lost about half its value over a two-year period. Jana is reviewing the CBS transaction, spokesman Charles Penner said. Last month, the New York-based fund rejected an offer from Cnet to give it a seat on its board. Cnet's main Web site focuses on technology news, consumer advice and reviews of products such as mobile phones and computers. In total, the company's sites were the 16th most visited in the U.S. in March, drawing 34.6 million unique visitors, according to researcher ComScore Inc. CBS had 28.6 million unique visitors, ranking it 24th. ``They offer us significant exposure to the fastest-growing advertising sector,'' Moonves said on a conference call today. ``We have taken a major leap forward to become a top 10 Internet company for the future.'' `Fits Nicely' Digital distribution of television programs and movies will result in ``rich and recurring value,'' CBS Chairman Sumner Redstone said in a February speech. Viacom Inc., the other company he controls, has built up the Web sites for its MTV and Comedy Central to become the 13th most visited U.S. Internet property, according to Reston, Virginia-based ComScore. ``We're always looking for strategic acquisitions in higher growth businesses,'' Redstone said today in a statement. ``The Cnet acquisition nicely fits with that strategy.'' The price is 18 times Cnet's 2008 estimated earnings before interest, taxes, depreciation and amortization, Jason Bazinet, an analyst at Citigroup Inc. in New York, wrote today in a note. By comparison, he said shares of Bankrate Inc. trade at 12 times estimated earnings and WebMD Health Corp. trades at 14 times. CBS had $2.26 billion in cash at the end of the first quarter. The acquisition, expected to close in the third quarter, won't threaten future dividend increases, Moonves said in an interview. Last month CBS raised its quarterly dividend to 27 cents, a two-cent increase. Web Growth On the company's earnings conference call April 29, Moonves forecast that online revenue will top $50 million this year from about $30 million in 2007. CBS had total revenue of $14.1 billion last year. Cnet will help CBS sell online advertising and adds complementary Web sites such as TV.com that will be combined with CBS Audience Network, the broadcaster's Internet operation, Moonves said in an interview. Once the acquisition is completed, CBS will create a new combined Internet division that will be headed by Quincy Smith, president of CBS Interactive. Smith joined CBS in 2006 from the investment bank Allen & Co., where he arranged transactions including AOL's acquisition of Advertising.com and Viacom's purchase of NeoPets. ``Our advertising base is very different than their advertising base,'' Moonves said. ``It's about content on the Web, what works, what doesn't work and how you monetize it.'' http://www.bloomberg.com/apps/news?p...sJE&refer=home __________________ Should You Email Your Members? Link1 \| Link2 \| Link3 Enough Said. "Would you rather live like a king for a year or like a prince forever?"

05-15-2008, 12:11 PM	#2
StuartD Sofa King Band Join Date: Jul 2002 Location: Outside the box Posts: 29,903	http://www.gfy.com/fucking-around-and-business-discussion/828613-cbs-corporation-acquire-cnet-networks-inc.html __________________ This is me on facebook This is me on twitter

05-15-2008, 12:16 PM	#3
CaroMark Confirmed User Join Date: Sep 2002 Location: Tampa, Florida Posts: 1,357	Should be an awesome growth move for them! __________________ Mark M, 727-433-0745 [email protected] Support is everything! ICQ# 40467849, AIM MMemmer333

05-15-2008, 02:20 PM	#4
NinjaSteve Too lazy to set a custom title Industry Role: Join Date: Dec 2003 Posts: 11,089	Isn't that less than what Vitamin Water was sold for? Less than what Facebook will probably sell for? The world is a f'd up place. __________________ ...