CNet’s Acquisition = Solid Business + Extreme Potential

From the article:

    "So the saga of CNET (NSDQ: CNET) Networks finally has a home…well, at least on paper for now if and when the deal goes through, because there will be a lot of drama and opposition from Jana consortium on this. As Joseph mentioned, and as we implored before for CBS, this is the big one they had been wanting to do. I know from sources that CBS (NYSE: CBS) had looked at CNET at least three times before, as had everyone in the world, and passed on it. Not sure how CBS felt the economics had changed (well, CNET became more desperate, for one), but this certainly gives them a big play to build on its relatively small-ish and TV-focused online efforts till now. Everyone looked at CNET, including Yahoo (NSDQ: YHOO), New York Times (NYSE: NYT), CBS-sister company Viacom (NYSE: VIA), and many many others, but couldn’t make the economics work. The very same economics which Jana had been criticizing for a long time now."

Many companies who previously looked at CNet only saw what they had, what they produced. In essence, they were looking at a free ride, and not what can be done with what they have. Category killer domains such as TV.COM, Search.Com, Help.com, Downloads.com, MP3.Com, each on its own has the potential to be worth more than the CNet acquisition combined. How? Of course it takes talent, funding, execution, luck. With CBS behind these web properties many previously missing pieces are now in place. It is the combination of the two which compounds the potential of CNet alone.

Source: Posted on TheConceptualist by Sahar Sahid -- Reprinted with permission -- May 15, 2008