CBS buying CNET
The broadcast company CBS (CBS) is making a biggerer push on the web by acquiring CNet (CNET) for $11.50 a share, or $1.8 billion, in a deal that will make them one of the top 10 web companies in the US. The deal offers CNet shareholders a 44% premium to Wednesday’s closing price and comes as CBS has been struggling to gain traction with investors.
“There are very few opportunities to acquire a profitable, growing, well-managed Internet company like CNet Networks,” said CEO Les 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.”
Not everyone views CNet as a well-managed Internet company. Activist investors led by Jana Partners earlier this week won a court decision giving them the right to proceed with a proxy fight against CNet. Jana has accused CNet of strategic missteps and wants to tighten the company’s strategic focus and double down its efforts at making money. A report Jana issued last month says adopting the fund’s plans could make CNet worth $11 a share, up from the $7 or so the stock was fetching at the time. Going by that math, this deal should make even CNet’s dissidents happy.
For the news source go here.
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