CBS Shells Out $1.8 Billion for CNET

NEW YORK/SAN FRANCISCO,
May 15: CBS Corporation is further expanding its new-media business, reaching a
deal to acquire CNET Networks for $1.8 billion, in a deal that will make it one
of the ten most popular Internet companies in the U.S., with a combined 54
million unique users per month, and approximately 200 million users worldwide.

San Francisco-based CNET
operates several leading entertainment, news and information sites, including
CNET, ZDNet, GameSpot.com, TV.com, mp3.com, CNET news.com, Search.com and
TechRepublic, among others.

"There are very few
opportunities to acquire a profitable, growing, well-managed Internet company
like CNET Networks," said Leslie Moonves, the president and CEO of CBS
Corp. "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. 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.”

CNET Networks’ sites will
be combined with CBS's stable of interactive businesses, which include CBS.com,
CBSSports.com, CBSCollegeSports.com, CBSNews.com, last.fm, CBS Television
Stations digital media platforms, and the distribution network of the CBS
Audience Network, which is made up of more than 300 partner websites and
reaches 82 percent of all online users in the U.S.

"The core businesses
of CNET Networks and CBS Interactive represent near perfect category symmetry
in premium online content," said Quincy Smith, the president of CBS
Interactive. "Together we will have a terrific opportunity to not only
grow our established businesses, but to build new attractive verticals of
content as well. This is the beginning of an era for both CBS and CNET
Networks."

"We're thrilled to
join CBS and combine our interactive media experience with CBS's world-class
content," said Neil Ashe, the CEO of CNET Networks. CNET Networks operates
some of the most important premium online brands, serving the most sought after
online audiences. Today's announcement brings together two organizations that
complement each other and working with Leslie, Quincy and the talented people
at CBS, we look forward to taking our business and our brands to the next
level."

The transaction is subject
to customary conditions and is expected to be completed in the third quarter of
this year.

—By Mansha Daswani