Who will win the war to control CNET, and could a sale be on the horizon as well?
Published: Tuesday, January 08, 2008
-SDH Some investors (Jana Partners LLC,) in CNET Networks aren't too happy with the company's performance and are building a coalition of the willing to boost their influence to take control of the company. But CNET isn't taking it lying down and has vowed to squelch the uprising. Sure the company's family of Web sites attracted 130.6 million visitors worldwide, making it the ninth largest Internet audience, but investors believe revenues should have seen a spike far greater than the anorexic 7% it saw in 2007. So what does all this mean for CNET? Jana Partners LLC is trying to control more seats on the Board which will no doubt increase their influence and maybe even result in changes in management. If they are successful, they may even push for a sale of the company which currently has a market cap of $1.2 billion. Who would cut a check for CNET? One name comes to mind, Barry Diller. However we’re sure there are others who would be interested.The Jana group sued CNet Monday in an effort to overcome the company's resistance. The complaint, filed in the Delaware Court of Chancery, seeks an injunction that would override CNet and enable Jana to present its proposal to shareholders. Jana will need the backing of other shareholders to pull off its coup. The group, which also includes venture capital firm Spark Capital and former Internet executive Paul Gardi, holds a roughly 16 percent stake in CNet, including derivatives that can be converted into stock. Investors vie for control of CNet board [AP] Labels: CNET, Digital_Media, TechMedia |



