CNET Responds To Investor Interest; Deems It "Improper"

CNET (NSDQ: CNET) Networks has come out with a statement following the revelation last night that a group of investors was interested in taking over the majority in the board. It says the investor interest is “improper” under its by-laws. “CNET Networks’ governance processes and by-laws are intended to enable all stockholders having a legitimate interest in enhancing the Company’s value over time to submit proposals, and to prevent short-term stockholders without standing from using the Company’s established governance procedures in order to further their individual agenda. Furthermore, the Company believes that no person or group of persons should be able to gain a majority of the Board and control of the Company without offering sufficient value to all stockholders.”

It says since the new management under Neil Ashe took over the company “has sharpened its focus on core brands, disposed of underperforming assets, recruited industry leaders to replace almost half of its executive management team, made strategic acquisitions solidifying the Company’s leadership in key categories and geographies, and added two independent members to its Board.”

“CNET Network’s board of directors is comprised of eight directors, seven of whom are independent. The management team is fully supported by the Board of Directors in these efforts.”