 |
Breaking
eBusiness and Search News |
|
 |
CNET Probably Not For Sale
A recent article from News Corp's New York Post suggested CNET Networks could be in play as an acquisition target.
The NewYork Post, citing an anonymous source on June 30, suggested CNET Networks could be the latest in a long string of online media acquisitions. While a traditional media name like Viacom was mentioned, AOL, Yahoo!, and InterActiveCorp were listed as possible buyers.
With a strong web presence and multiple online outlets, CNET could be an attractive acquisition target. The company won't officially discuss the Post's article. A spokesperson for CNET said, "It's our policy not to comment on rumors or speculation."
But Wall Street sees CNET as overvalued at current stock prices, which value it in the $1.6 billion USD range. One analyst for Standard and Poor's Equity Research, Scott Kessler, rates CNET a "strong sell" and is turned off by the company's high debt.
Recent CNET financials disclosed a first quarter result of $383,000 in net income on $74.7 million in revenue. Its various Internet properties picked up almost 106 million unique monthly visitors during the quarter.
Still, one expert in media mergers and acquisitions doesn't see the CNET deal happening anytime soon. "We are skeptical of the current takeover rumors on CNET," said Tolman Geffs, managing director, the Jordan, Edmiston Group.
"Looking forward, CNET certainly is attractive given their audience. The current market price reflects high growth expectations, so perhaps CNET will grow into its valuation."
Receive
Our Daily Email of Breaking eBusiness News
About the Author:
David Utter is a staff writer for WebProNews covering technology and business. Email him here.
 WebProNews RSS Feed
More Articles
Contact WebProNews |
|
|
 eBUSINESS
RESOURCES |
|
|
 |
|
| About
WebProNews |
WebProNews is the number
one source for eBusiness News. Over 5 million eBusiness professionals read
WebProNews and other iEntry business and tech publications.
WebProNews provides real-time coverage of internet
business.
Free Email Newsletters:
|
|
|
|
David Utter
