CBS to buy web publisher CNET for $1.8 billion

By Paul Thomasch and Franklin Paul

NEW YORK (Reuters) - CBS Corp (CBS.N: Quote, Profile, Research, Stock Buzz) said on Thursday it would buy web media company CNET Networks Inc CNET.O for about $1.8 billion to boost the television broadcaster's reach across the Internet.

The deal could also put to rest a brewing fight between CNET and an activist investor group led by hedge fund Jana Partners, which wants to shake up the web company. The deal values CNET at $11.50 per share and represents a 45 percent premium to its closing price on Wednesday.

On completion of the purchase, expected in the third quarter, CBS's digital properties would be home to 54 million unique monthly users in the United States and about 200 million users worldwide, the companies said.

While overshadowed by the number of users who visit sites from Yahoo Inc (YHOO.O: Quote, Profile, Research, Stock Buzz), Google Inc (GOOG.O: Quote, Profile, Research, Stock Buzz) or News Corp's (NWSa.N: Quote, Profile, Research, Stock Buzz) Fox Interactive each month -- between roughly 90 million and 140 million -- the deal would still make CBS's properties among the most popular in the United States.

"Our goal is to have our content in as many platforms as possible," CBS Chief Executive Leslie Moonves said in an interview. "And it's important for us to be in the new media space in a big way. When you can become one of the top 10 Internet sites in one fell swoop you should take advantage of that."

As recently as last month, when CBS announced earnings, Moonves said it would look at acquisitions to help bolster the digital business, following a $110 million deal for an international billboard and outdoor advertising company.

But at the time he said there were no plans to announce any major acquisition. In his interview on Thursday, Moonves said the CNET deal came together "pretty quickly," despite being the largest acquisition for CBS since it split with Viacom Inc (VIAb.N: Quote, Profile, Research, Stock Buzz) at the close of 2005.

"It did come together in the last two or three weeks," he said, adding he did not expect this to start an acquisition spree for CBS. "We're always looking, I would highly doubt you see us do anything of any size soon."