CBS pays through the nose for Cnet
15 May 2008 | 17:09 BST
$1.8 billion in cash buys broadcaster web presence
MEDIA MEGALITH CBS has reached down the back of the sofa and pulled out a cool $1.8 billion to snap up online news service Cnet.
CBS' desperation to get online is amply illustrated by the purchase price which values Cnet at a staggering 45 per cent more than its closing price on Wall Street yesterday.
Also no doubt staggering under the weight of dollar bills will be Cnet co-founder Shelby Bonnie who still owns shares in his old outfit which now look set to pay out a trouser-stretching $116.2 million windfall.
Despite apparently paying over the odds for Cnet, CBS' chief financial officer Fred Reynolds told a press conference the price was 'fair' and that the acquisition would immediately add to CBS' bottom line.
The company also claimed that the Cnet deal would make CBS one of the top ten Web operators in the US, with 54 million visitors a month and approximately 200 million users worldwide.
Cnet owns a plethora of sites including ZDNet, GameSpot.com, TV.com, mp3.com and News.com. µ
L'Inq
AP
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