CNET shares, options up on Google rumor

SAN FRANCISCO (Reuters) - Shares of media company CNET Networks Inc, currently battling dissident shareholders who want to expand its board, soared more than 7 percent on Friday, on speculation that Google Inc might be interested in acquiring a stake in it.

Options volume also soared on the speculation.

"There is a rumor circulating that Google might have an interest in CNET. Therefore, the options volume has picked up dramatically on that rumor," said William Lefkowitz, options strategist at brokerage firm vFinance Investments in New York.

Google officials declined to comment and a CNET spokeswoman was not immediately available.

Steve Weinstein, an analyst at Pacific Crest Securities, said Google's interest in CNET is "highly unlikely."

But "potentially, that could be moving the stock," he said.

Shares of CNET traded close to their year-high of $9.88, rising 5.2 percent, or 41 cents, to $8.09, on the Nasdaq on Friday.

On the options market, roughly 19,000 calls compared to 514 puts changed hands in CNET Friday morning, 31 times the normal level, according to option analytics firm Trade Alert.

February and March calls have been particularly active, giving investors the right to buy CNET shares at $10 apiece.