CNET Networks takeover sought

by Ross Miller { Jan 8th 2008 at 3:00PM }

Media company CNET Networks, whose various websites including Gamespot, GameFAQs and Metacritic, looks to be in the midst of a takeover. A group of investors, led by Jana Partners LLC and claiming a collective 21.3 percent stake in the company, are currently trying to use their leverage to nominate seven new directors, according to Bloomberg. (Note: This incident is unrelated to the recent Gerstmann-gate fiasco.)

Said former Ask Jeeves Inc. executive Paul Gardi, who stands to be one of those new directors, "With better board oversight, the right team could do great things with this brand ... We see huge opportunity in the strength of CNET's content." The contention is that the media company's shares have underperformed due to mismanagement of their resources.

CNET CEO Neil Ashe said that the company welcomes suggestions from its stockholders but noted Jana's proposed shuffle was "improper" and not possible with the company bylaws. The latter argument prompted Jana to file a lawsuit in Delaware (home of CNET) claiming the bylaws were illegal in the state.

Tags: cnet, cnet-networks, gamefaqs, gamespot, jana-partners, metacritic, ziffdavis

Reader Comments (Page 1 of 1)

tc @ Jan 8th 2008 3:07PM

How valuable is a games news network without integrity?

Not that i'm saying cnet is a shameful, despicable insult against gaming journalism or anything...I'm just randomly thinking aloud.

JodyAnthony (death by snoo-snoo) @ Jan 8th 2008 3:28PM

cnet purchased by eidos

Marty @ Jan 8th 2008 3:32PM

GameSpot and CNet aren't worth a turd to me, but GameFAQs and Metacritic still seem alright.

Still, I wouldn't put anyone involved with AskJeeves.com in charge. Look what happened to that piece of garbage.

UltraDSA @ Jan 8th 2008 8:34PM

Gamefaqs is like living under communist rule, hence why I created gamerdatabase.com

Giddieon @ Jan 8th 2008 3:41PM

I will not go to any of Cnet sites... not after what happen... they killed that site and all in the name of money...

Money from ads and game publishers...

it would be nice for a site that cared just about games... and less on the ad stuff... made their money there ways like none game ads or a store selling schwag or even donations... I would donate to a site with no ads for sure...

Sam @ Jan 8th 2008 4:02PM

Even if the Gertsmann fiasco didn't have a direct effect on the company's bottom line, I suspect that the negative public relations that resulted didn't exactly endear the current management to Jana and the other shareholders, and to say CNet bugled the whole thing is (as we all know) a severe understatement.

In addition, for as many sites as CNet has, some do much better than others. I don't know anyone who still goes to mp3.com, for instance.

Matt W. @ Jan 8th 2008 4:31PM

Here's an idea... If Jana wins control, they should hire Jeff Gerstman as chairman of the board -- even if just for the day -- so he could kick Neil's Ashe...

Dirk Dorkelson @ Jan 8th 2008 4:57PM

Hey, didn't the NYT break this story? How come when they make a mistake you guys all point and laugh, but when they break a story, you give Bloomberg credit? I'm just sayin'.

Matt W. @ Jan 8th 2008 5:23PM

Yes, the Times had the Jana angle before anyone, but the truth is Wall Street analysts have been saying CNET is a prime takeover candidate for over a year, since its share price has been a loser for over 2 years now.

BananaBoat @ Jan 8th 2008 5:01PM

Metacritic is the only property on the list worth salvaging from an "Integrity" standpoint. GameFAQ's is a cesspool, and Gamespot already lost it's integrity for obvious reasons. Unfortunately, as long as companies are willing to pay big bucks for good reviews and add space, Gamespot will stay profitable.

Invader J @ Jan 8th 2008 5:48PM

*Fuck* GameSpot. Let 'em get taken over, maybe it'll be for the better.

Sure can't be for the worse, at this rate.

Madster @ Jan 8th 2008 6:07PM

Yay Hostile takeover!

I still go to Gamefaqs. Know any bigger repositories that aren't overflowing with annoying ads?

umm....hello??? @ Jan 8th 2008 7:16PM

cool...maybe now Cnet will get rid of all of their stupid videos...especially "Top Ten Lists" where all they do is show a picture of the item and talk about it?! I can read text/pictures much faster, and don't have to listen to some stupid talking head....and the page loads faster on my computer.