Cnet may be up for sale, report says Web site owner has no comment, but shares climb $1.10
A report that Cnet Networks, owner of several popular technology Web sites, is shopping itself to potential buyers sent the company's shares up nearly 10 percent Thursday.
Executives from the San Francisco firm have held informal discussions with Viacom, the parent of CBS television, and Barry Diller's InterActiveCorp, according to an article Thursday in the New York Post.
Yahoo Inc. and Time Warner, parent of America Online, might also be interested in bidding, the report says.
Cnet's shares rose $1.10 to close at $11.74 Thursday.
"I think Cnet would be a very attractive property for any number of online and offline media players," said William Morrison, an analyst for JMP Securities, an investment bank. "In my opinion, the company is a leader in a number of markets and has a darn large audience."
Cnet spokeswoman Sarah Cain declined to comment on what she described as rumor and speculation.
Unnamed sources cited by the Post said that the talks with Cnet's potential suitors are in the early stages and that no sales price has been mentioned.
Smaller online content companies such as Cnet have become hot commodities because of the strong Internet advertising market. Larger media firms are looking online to capitalize on a shift in ad spending from television and newspapers.
In the past year, the Wall Street Journal's parent, Dow Jones & Co., acquired MarketWatch, the San Francisco financial news site, for $528 million. The New York Times Co. bought About.com, a Web portal for finding information, for $410 million.
Analysts have said for months that Cnet, with a market capitalization of $1.71 billion, is a likely candidate for a buyout.
Its holdings include its flagship Cnet.com personal technology site, technology news site News.com and comparison shopping service mySimon.
More recently, Cnet has expanded into entertainment by acquiring Webshots, a photo-sharing site, and TV.com, a site for television enthusiasts. It also created MP3.com, a site for digital-music lovers.
Founded in 1992 by Halsey Minor, Cnet quickly became a pillar of the Bay Area's Internet industry. Its early strategy of bridging the Internet and television -- Cnet produced several broadcast shows -- failed.
However, led by Shelby Bonnie, Minor's early partner, the company has caught a second wind online and reported its first profitable year in 2004. In terms of traffic, it had an average of 105.9 million unique monthly users during the first three months this year.
Michael Gallant, an analyst for CIBC World Markets, called Cnet's sale inevitable at some point.
The site would fit well with entertainment companies, many of which are focusing heavily on their online properties. But Gallant was more skeptical about Yahoo's interest.
The Sunnyvale Internet portal tends to buy companies that lack traffic and recognizable brands, Gallant wrote. In addition, Yahoo focuses on mass markets, while Cnet is geared toward category enthusiasts, he said.
Executives from the San Francisco firm have held informal discussions with Viacom, the parent of CBS television, and Barry Diller's InterActiveCorp, according to an article Thursday in the New York Post.
Yahoo Inc. and Time Warner, parent of America Online, might also be interested in bidding, the report says.
Cnet's shares rose $1.10 to close at $11.74 Thursday.
"I think Cnet would be a very attractive property for any number of online and offline media players," said William Morrison, an analyst for JMP Securities, an investment bank. "In my opinion, the company is a leader in a number of markets and has a darn large audience."
Cnet spokeswoman Sarah Cain declined to comment on what she described as rumor and speculation.
Unnamed sources cited by the Post said that the talks with Cnet's potential suitors are in the early stages and that no sales price has been mentioned.
Smaller online content companies such as Cnet have become hot commodities because of the strong Internet advertising market. Larger media firms are looking online to capitalize on a shift in ad spending from television and newspapers.
In the past year, the Wall Street Journal's parent, Dow Jones & Co., acquired MarketWatch, the San Francisco financial news site, for $528 million. The New York Times Co. bought About.com, a Web portal for finding information, for $410 million.
Analysts have said for months that Cnet, with a market capitalization of $1.71 billion, is a likely candidate for a buyout.
Its holdings include its flagship Cnet.com personal technology site, technology news site News.com and comparison shopping service mySimon.
More recently, Cnet has expanded into entertainment by acquiring Webshots, a photo-sharing site, and TV.com, a site for television enthusiasts. It also created MP3.com, a site for digital-music lovers.
Founded in 1992 by Halsey Minor, Cnet quickly became a pillar of the Bay Area's Internet industry. Its early strategy of bridging the Internet and television -- Cnet produced several broadcast shows -- failed.
However, led by Shelby Bonnie, Minor's early partner, the company has caught a second wind online and reported its first profitable year in 2004. In terms of traffic, it had an average of 105.9 million unique monthly users during the first three months this year.
Michael Gallant, an analyst for CIBC World Markets, called Cnet's sale inevitable at some point.
The site would fit well with entertainment companies, many of which are focusing heavily on their online properties. But Gallant was more skeptical about Yahoo's interest.
The Sunnyvale Internet portal tends to buy companies that lack traffic and recognizable brands, Gallant wrote. In addition, Yahoo focuses on mass markets, while Cnet is geared toward category enthusiasts, he said.
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