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.
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.”
David Utter is a staff writer for Murdok covering technology and business. Email him here.
