Synergies available in CNET acquisition
“Interestingly, on a conference call with investors Thursday morning, CBS said that its own Internet properties â€” like Sportsline and the Web site for the Grammy Awards â€” are actually growing faster than CNet is.
“CBS, of course, gave the normal synergy talk: The networkâ€™s relations with auto, financial services and drug companies will bring new advertisers to CNet, and CNetâ€™s tech advertisers will add customers to CBS properties. CBS can obviously cut some of CNetâ€™s overhead costs. (If the deal goes through, it also cures a big headache for CNetâ€™s management: the agitation for reform from Jana Partners, a hedge fund.)
“CNet has been diversifying away from technology into some other areas that may be of use for CBS. It is building its BNet service for small businesses. Intriguingly for CBS, CNet also owns TV.com, which it has been trying to use to create an entertainment and television fan portal. Owning CNetâ€™s News.com domain name might even lead to a revival strategy for the once great CBS News.”
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