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CBS Corp. confirmed on Thursday the
acquisition of CNET Networks Inc. for $1.8 billion, in one of the biggest deals
to strike the Internet world in the recent years. The investment will increase
the television broadcaster’s online audience on a market rapidly expanding
market.
The acquisition of CNET
Networks, which owns several websites, such as News.com, TV.com or GameSpot,
will turn CBS in one of the 10 most popular Internet companies in the U.S., with
54 million unique users per month, and 200 million users worldwide.
CBS President and Chief
Executive Officer Leslie Moonves said in a statement that there are only few
opportunities as profitable as this one, and that CNET Networks will add “a
tremendous platform” at CBS’s entertainment, news, sports, music and
information content, which will appeal to a whole new global audience.
The deal means $11.50 a share
for CNET shareholders, a 54 percent premium to Wednesday’s $7.95 a share closing
price, the companies announced in a statement today. The deal, which is
expected to complete in the third quarter of this year, has been unanimously
approved by the CNET board, the company said in a joint statement with CBS.
CBS, which reported $406 million
in revenues in 2007, seeks new opportunities with this acquisition, including
in terms of overseas audience, especially China, the company added in its
statement.
In its turn, CNET chief
executive Neil Ashe said they were thrilled of this deal, which combines their
interactive media experience with CBS’s world-class content, adding that his
company currently operates premium online brands which serve “the most sought
after online audiences.”
A representative for the hedge-fund
firm Jana Partners, a group of investors from New York who has been trying to
get a piece of CNET after the companies shares went down last year by using a
proxy fight to get directors elected to the company’s board, could not be
reached for comments.
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