New York - TV Network CBS is buying CNET, the internet's leading provider of hi-technology information for 1.8 billion dollars, the company announced Thursday. The move will greatly expand CBS' presence on the web and allow it to reach a greater international audience, CBS said.
The price of 11.50 dollars a share, represents a 45 per cent premium on CNET's closing price on Wednesday and came after activist shareholders had been pushing San Francisco-based CNET to sell itself as the stock lost about half its value over a two-year period.
CBS said that the deal would catapult it into the ranks of the 10 most popular Internet companies in the United States, with around 200 million users worldwide.
"There are very few opportunities to acquire a profitable, growing, well-managed internet company like CNET Networks," said CBS Chief Executive Leslie Moonves. "Together, CBS and CNET Networks will have significant additional exposure to the fastest-growing advertising sector and can accelerate our growth through a number of new content, promotion and advertising initiatives."
The transaction came amid a flurry of takeover activity in the technology sector with HP buying enterprise technology provider EDS for 13.9 billion dollars earlier this week, and Yahoo still embroiled in a possible sale to Microsoft.
