Monday was day 1 for CBS Corp.'s
$1.8 billion acquisition of Cnet Networks, and it got underway with a
letter to employees from CBS chief executive Quincy Smith and former Cnet CEO Neil Ashe. In it, the executives outlined the organizational structure and leadership of the newly merged businesses and mapped out the ongoing integration.
That Smith and Co. were ready with this information on the day the deal closed, and more important, that they communicated it to employees, bodes well for the deal's long-term performance. As we've
noted in Corporate Dealmaker, waiting even a week to engage employees on either side of an acquisition can send the best talent packing and leave others fretting about their future.
Under the new organizational structure, Cnet will become part of CBS Interactive, the home of digital brands including CBSSports.com, CBS.com, GameSpot, TV.com and BNET. Former Cnet chief executive Neil Ashe is now president of the business, and Cnet's CFO Zander Lurie has taken on the same role at CBS Interactive. Byron Rubin, who had been CFO, will stay on to lead the continuing integration before moving over to head up corporate development for CBS.
There's more work to be done in the coming months before this acquisition can be called a success - namely finalizing the go-to-market strategy for the newly expanded CBS Interactive and getting the CBS and Cnet sales teams operating in sync. Merging two companies is never easy, but getting started early definitely helps. -
Suzanne Stevens
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