Small CNET Acquisition: Buys Chinese Auto Site Cheshi; Looking For Growth Capital There

CNET’s (NSDQ: CNET) pace of smaller acquisitions has certainly slowed down as its focus is on streamlining operations and the proxy board fight: during Q407, it bought Cheshi, a Beijing-based automotive website whose leading advertisers include Mazda, Infiniti, Dong Feng-Nissan, Buick, and Ford. The acquisition adds to its other auto sites in China, including XCar and Gocar (both acquired). No financial details were released.

Staci adds: Asked during the earnings call about China plans and whether CNET would sell its assets there, CEO Neil Ashe replied: “We’re very proud of what we’ve built in China. We’re in a leadership position in technology, a leadership position in autos, a developing position in lifestyle and a proven ability to enter new categories.” He described it as a very valuable business with room for growth and said rather than selling, it is looking for capital to grow that business. “That we’ll decide based on the terms of that capital,” he said, adding that CNET could still finance the growth themselves. “We have a lot of room for growth and we want to realize that growth.”

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