Saul Hansell of the New York Times writes about the synergies that CBS will be able to bring to its acquisition of tech news provider CNET Networks.
Hansell writes, “For one, CBS is also a company with well-known brands and sluggish growth. So CNet adds some luster to CBS, even if it would drag down other theoretical buyers like Yahoo.
“Interestingly, on a conference call with investors Thursday morning, CBS said that its own Internet properties — like Sportsline and the Web site for the Grammy Awards — are actually growing faster than CNet is.
“CBS, of course, gave the normal synergy talk: The network’s relations with auto, financial services and drug companies will bring new advertisers to CNet, and CNet’s tech advertisers will add customers to CBS properties. CBS can obviously cut some of CNet’s overhead costs. (If the deal goes through, it also cures a big headache for CNet’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 CNet’s News.com domain name might even lead to a revival strategy for the once great CBS News.”
OLD Media Moves
Synergies available in CNET acquisition
May 16, 2008
Saul Hansell of the New York Times writes about the synergies that CBS will be able to bring to its acquisition of tech news provider CNET Networks.
Hansell writes, “For one, CBS is also a company with well-known brands and sluggish growth. So CNet adds some luster to CBS, even if it would drag down other theoretical buyers like Yahoo.
“Interestingly, on a conference call with investors Thursday morning, CBS said that its own Internet properties — like Sportsline and the Web site for the Grammy Awards — are actually growing faster than CNet is.
“CBS, of course, gave the normal synergy talk: The network’s relations with auto, financial services and drug companies will bring new advertisers to CNet, and CNet’s tech advertisers will add customers to CBS properties. CBS can obviously cut some of CNet’s overhead costs. (If the deal goes through, it also cures a big headache for CNet’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 CNet’s News.com domain name might even lead to a revival strategy for the once great CBS News.”
Read more here.
Media News
Podcast producer Mannarino departs Adweek
April 25, 2024
Media News
Orange County Biz Journal hires Koch as its editor
April 25, 2024
Full-Time
Wired seeks a senior writer to cover China
April 25, 2024
Media News
Star-Tribune biz reporter Kumar is now community engagement director
April 25, 2024
Media News
Why The Markup joined CalMatters
April 25, 2024
Subscribe to TBN
Receive updates about new stories in the industry daily or weekly.