CBS Buys CNet for $1.8 Billion

Media company and broadcast television network CBS has reached a deal to buy the online news site CNet for $1.8 billion in cash.

Looking to expand its online presence—and the amount of Internet ad space it can sell—media giant CBS has announced it will acquire online news and information service CNet for $1.8 billion in case, or $11.50 per share, which represents a substantial premium for the company. Once approved, the acquisition would catapult CBS into the upper echelon of online properties, since CNet boasts over 2300 million users around the world and over 50 million unique visitors a month. The deal also lets CNet sidestep a confrontation with Jana Partners LLC, one of CNet’s largest investors, who has been running a proxy battle to shake up the company in the wake of stock price declines.

"There are very few opportunities to acquire a profitable, growing, well-managed Internet company like CNet Networks," said CBS president and CEO Les Moonves, 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."

CBS says it plans to integrate CNet into its own collection of online enterprises, including CBS-labeled Web sites as well as music service last.fm, which the company acquired a year ago for $280 million. CNet brings a number of online sites to the acquisition, including MP3.com, search.com, ZDNet, GameSport.com, and TV.com.

CBS expects the deal to conclude in the third quarter of 2008.