Filed under: Deals, CBS Corp ‘B’ (CBS)
The Associated Press reports that CBS Corp. (NYSE: CBS) is buying CNet Networks Inc. (NASDAQ: CNET) for $1.75 billion. This $11.50 a share deal is a 45% premium over Wednesday’s closing price
CNet’s Web sites include News.com, TV.com, Mp3.com, MySimon and GameSpot. And CBS anticipates to use CNet to tap into the World wide web advertising market. This deal raises the question of whether any CBS competitors will decide to get into the game of buying World wide web content companies.
Here are three possible targets:
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TheStreet.com (NASDAQ: TSCM) - This provider of business, investment and ratings content has $65 million in sales and a market cap of $236 million.
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TechTarget (NASDAQ: TTGT) - This provider of on the internet content for buyers and sellers of corporate information technology (IT) products has $95 million in sales and a $531 million market cap.
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WebMD Health Corp (NASDAQ: WBMD) - This provider health information services to consumers, doctors and other healthcare professionals, employers and health plans has $332 million in sales and it’s market capitalization is $1.7 billion
I think traditional media companies buying Internet ones could become a trend. It would only take two more such deals to make it one.
Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.
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