More on CNET's Fate

(Read our earlier piece here first on CNET being on the block…) I’ve spoken to a few people involved and interested in CNET Networks, and it does seem that the talks with all parties are in a very preliminary stage.

One of the interested parties said that the price CNET’s asking or will command is way too high, and its disparate businesses/sites made sense to help the company grow forward, but do not make a good cohesive acquisition target.

As we mentioned earlier, it may make sense to break up the company and sell pieces. Of course, that will be tricky if buying traffic is the goal.

Another banker I spoke to said that Viacom and IAC are both historically cheap, and unlikely to pay 5 times revenue and 40 times EBITDA for a cyclical ad revenue stream, so any of those suitors may not buy it as one piece. Viacom, of course, has made forays into the games business and GameSpot might make sense.

News.com as a separate acquisition also came up during my talks…whatever it is, you can always rely on us to tell you the story as it unfolds.

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