IN DEAL THAT PUMPS WEB PRESENCE, CBS SWOOPS UP CNET FOR $1.8B

By Wiretap staff

CBS Corp. has agreed to buy Internet news and entertainment company CNET for $1.8 billion, the Los Angeles Times and other news outlets reported Thursday. With the companies� combined 54 million unique U.S. visitors and about 200 million visitors worldwide, the Times and Reuters said, the deal will propel CBS to the top 10 Internet companies in the U.S.

"When you can combine the entertainment assets, the news assets, the platforms that are available with technology, the cross advertising opportunities, it just gives us great scale," CBS CEO Leslie Moonves said on a conference call.

San Francisco-based CNET includes the respected tech-oriented news sites �CNET and ZDNet as well as GameSpot.com, TV.com, mp3.com, UrbanBaby, CHOW, MySimon and TechRepublic,� according to the Times.

CNET also has a significant international web footprint, especially in China, the Times said.

The board of CNET, which has been engaged in a proxy fight with hedge fund Jana Partners and other investors, unanimously approved the $11.50-per-share deal, which values CNET at a 45% premium over its $7.95-per-share closing price Wednesday. Shares of CNET were up more than 40% Thursday morning after the deal was announced.