Stock Market News: CBS Buys CNET
In a move that CBS (CBS) hopes will help it expand its audience (and revenue, of course) the venerable media institution has announced that it is acquiring CNET (CNET). Mashable reports on what CBS says about the deal:
Leslie Moonves, President and Chief Executive Officer at CBS Corporation, said this about the acquisition: “There are very few opportunities to acquire a profitable, growing, well-managed Internet company like CNET Networks. 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.”
This could be a very savvy move for CBS, who is buying CNET (whose properties also include ZDNET, GameSpot.com, BNET, Search.com, TV.com and UrbanBaby, among others) for $1.8 billion. This amount has CNET stock up, while CBS stock is down.
CBS expands its reach
Recognizing that the old way of doing things with regard to media and — perhaps especially — news, CBS is looking to broaden its reach. Indeed, the move will mean that CBS instantly becomes one of the top ten Internet companies in terms of popularity, reach about 200 million users around the world.
In the long run, this could mean good news for CBS. The company is looking to the future, and rather than focusing on social media sites as so many others are doing, CBS is going for an established company that already has established sources of revenue.
For CNET, this means extrication from an increasingly unpleasant position that might have culminated in a shareholder revolt.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss.
