A major buyout of the CNET group of websites by television company CBS has been announced. A total sale price of $1.75bn has been agreed, which is equivalent to $11.50 a share, or 45% higher than Wednesday’s closing share price. The culmination of the two companies will enlarge even CNET’s already prestigious online presence and improve advertising opportunities between the two.
The CNET website itself is one dedicated to a topic close to all of hearts – technology and gadgets. As well as providing reviews and news, it has introduced video reviews, major online communities and much more. However, the CNET website is only a portion of the company’s web portfolio. Other technology related sites owned by CNET include ZDNet, Gamespot, and News.com as well as many others.
The purchase will make CBS one of the ten largest online entities in the world. The total visitor figures may still be dwarfed by some of the Internet behemoths like Google, it is still an audacious move that puts CBS even further on the media map. According to the Reuters website, CBS Chief Executive Leslie Moonves has stated the intention behind the purchase is that CBS’s “goal is to have our content in as many platforms as possible.”
The deal has yet to be finalised and needs to be agreed by regulators before the final paperwork is completed, but it is expected to go through in the third quarter of this year so is relatively imminent.