CBS Agrees to Buy CNET for $1.8 Billion

NEW YORK — CBS Corp., playing the white knight in a Web-publishing proxy fight, this morning said it agreed to buy CNET Networks Inc., the Internet news and entertainment company, for $11.50 per share, or about $1.8-billion in cash.

The price is a 45% premium over CNET’s $7.95-per-share closing price on Wednesday. CNET, in a joint press release with CBS, said its board unanimously voted to accept the offer.

The deal, expected to be completed in the third quarter, would vault CBS into the top 10 Internet companies in the United States, with a combined 54 million unique visitors monthly, and about 200 million visitors worldwide.

CNET, of San Francisco, owns the technology-oriented news sites CNET and ZDNet as well as GameSpot.com, TV.com, mp3.com, UrbanBaby, CHOW, MySimon and TechRepublic. The company has been in a proxy battle with the New York hedge fund Jana Partners, which has criticized the company as its shares have declined in the last year. Jana seeks to install its own slate of directors.

CNET, which reported revenues of $406 million in 2007, has a significant footprint overseas, especially in China, CBS noted in its statement.

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

“We’re thrilled to join CBS and combine our interactive media experience with CBS’s world-class content,” Neil Ashe, CNET chief executive said. “CNET Networks operates some of the most important premium online brands, serving the most sought after online audiences.”

By Thomas Mulligan
thomas.mulligan@latimes.com

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