Tuesday, May 24, 2016
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Huawei Sues Samsung Over Mobile Patents
Toyota Is Investing In Uber
Google Enhances Ads For Mobile Devices
LG G5 "Friends" LG CAM Plus, LG 360 CAM, LG 360 VR, LG TONE Devices Launch In US
Twitter Photos, videos And Names in Reply Tweets Will No Longer Count Toward 140-character Limit
Samsung Expands 750 EVO SSD With Availability and Increases Capacity to 500GB
Google's Paris Offices Raided
OCZ RD400 NVMe SSD Series Released
Active Discussions
Which of these DVD media are the best, most durable?
How to back up a PS2 DL game
Copy a protected DVD?
roxio issues with xp pro
Help make DVDInfoPro better with dvdinfomantis!!!
menu making
Optiarc AD-7260S review
cdrw trouble
 Home > News > General Computing > CBS Buy...
Last 7 Days News : SU MO TU WE TH FR SA All News

Saturday, May 17, 2008
CBS Buying CNET For $1.8 Billion; CBS Predicts $1 Billion Interactive Revenues By 2010


CBS will pay $11.50 a share for CNET. The all-cash deal represents a premium of 44% above the $7.95 CNET closed at yesterday.

If you take the JANA team's argument at face value, this deal won't satisfy them -- they wanted significant structural and management changes, and from the looks of the release Les Moonves and Quincy Smith are simpling swallowing the existing operation whole. On the other hand, CNET hasn't traded above $10 for years, so the JANA team will be getting a very nice return over a relatively short time, which ought to ease their pain. Update: Based on a couple conversations we've had this morning, we don't expect the JANA group to say anything about this other than "Thank You, Mr. Moonves!"

Does the deal make sense for CBS? There's almost no synergy, operationally or brand-wise (see chart, with typo in headline, at bottom of release), between the two businesses. Despite Quincy's frenzied deal-making and hand-shaking over the last year or so, CBS doesn't have much of a digital platform to date.

But that's as good an argument for making the deal as any -- rather than trying to build your way on to the Web, why not buy it? And if the JANA guys are right, CNET isn't a dying asset -- it's just one that needs to be revitalized

During the conference call announcing the deal , Les takes pains to praise CNET Neil Ashe as a great exec, and lets his CFO Fred Reynolds lay out the broad financial case for the deal. The gist: They can combine ad platforms and get some other savings to lower costs, and can boost revenue by exposing CNET advertisers to CBS and vice versa. They predict that the combined CBS Interactive/CNET unit will hit $1B in revenue by 2010 (News Corp.'s Fox Interactive will be about $100M shy of that this summer) and will be able to grow top-line in mid to high-teens, which comparable profit growth.


Previous
Next
Aliph intoduces new Jawbone Bluetooth Headset with NoiseAssassin Technology        All News        RIM to Launch Touch-screen BlackBerry in Q3
EBay seller pleaded guilty to software piracy charges     General Computing News      Investor to Lead Fight Against Yahoo Board

Get RSS feed Easy Print E-Mail this Message

Related News
Super Talent Introduces USB 3.1 Portable RAIDDrive
G-Technology Adds Four New Products to Evolution Series
Google Introduces the News Lab
Super Talent Portable Storage Device Features SSD RAID And USB 3.0
G-Technology Goes Rugged With Five New Portable External Storage Solutions
G-Technology Releases New Evolution Models, 'Studio' Line Of External Hard Drives
Super Talent Launches The RAIDDrive II Plus PCIe SSDs
G-Technology Expands Its Thunderbolt External Hard Drive Family
Sony Buys Semiconductor Manufacturing Facility From Renesas Electronics
PROMISE Introduces First Thunderbolt 2-Supporting Storage Solutions
SK hynix And Micron May Be Close To Licensing Deal
Stanford Engineers Build First Computer Using Carbon Nanotubes

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2016 - All rights reserved -
Privacy policy - Contact Us .