Peter Kafka of
Silicon Alley Insider writes:
Does the deal make sense for CBS? There's almost no synergy, operationally or brand-wise..., 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.
While Michael Arrington of
Techcrunch has an interesting post on why CNet didn't buy CBS:
So why didn't CNET continue to grow and ultimately take over a media dinosaur like CBS, instead of the other way around? Perhaps it was because they did deals like buying Webshots for $70 million and then a couple of years later selling Webshots for $40 million. Or perhaps it was because they failed to realize the importance of blogs until 2007.
Techblog questions if $1.8 billion was too much:
Old-line broadcast media company CBS is paying a 44 percent premium for an old-line Web company, CNet Networks. CBS was around at the dawn of the broadcast age, and CNet is a Web 1.0 company that's been struggling to make its way in the Web 2.0 era.
But the blogs aren't the only ones chattering. In the Yahoo discussion rooms one poster called
shorts_lie said:
This deal will not resurrect it. Fade on into the sunset, CBS.
While another user
zz202H100 said that even though
Citigroup analysts may not be for the deal:
Analysts have been wrong on CBS as of late. Beating earnings estimates, raising the dividend, growing the internet side to their business ... mgmt. is pushing the ball forward.
- Maria Woehr
See Dealscape: CBS to acquire embattled Cnet
See Dealscape: As the Bull charges, Cnet leads Deal Stocks
See Dealscape: Just In: Advisers on CBS-Cnet
See Dealscape's Ratings Review: Cnet deal to have no impact on CBS credit
See Dealscape: Jana's Cnet win the latest in a series of hedge fund campaigns
See Dealscape: CBS and Cnet: All about those video game-playing men?
