10-Q Watch: CNET: $6.2 Million For Chinese Auto Site; $2 Million For Jana; Severance; ZD Liabilities


Some tid-bits from CNET’s (NSDQ: CNET) just filed 10-Q:

Cheshi: The company announced last quarter that it had acquired the Chinese auto site, and now it says the price was $6.2 million, consisting of $3.7 million in cash and another $2.4 million in deferred consideration over the next 10 months. Also recall that the company says it’s looking for growth capital in China, although nothing has been announce heretofore.

Stockholder fight: The fight with Jana is costly: It spent $2 million in the quarter dealing with what it calls “stockholder proposals.”

Severance: “…pre-tax restructuring charges from the workforce realignment were $5.1 million, including $4.7 million for severance benefits and $0.4 million related to contract termination and non-personnel costs including outplacement, legal and other services.”

Ziff-Davis bankruptcy: By acquiring ZDNet in 2000, CNET assumed guaranteed some liabilities for Ziff Davis Media, which recently filed (and then announced its exit from) bankruptcy. Specifically, it could be on the hook for some leased office space in Illinois and New York City: “Any shortfalls in lease payments resulting from vacancies, including space currently occupied by the Company and Ziff Davis Media, as well as any sublease rental rates below amounts contractually owed by Ziff Davis Media, could adversely impact our financial results and could result in a significant use of cash. The annual base rent for the floor currently occupied by Ziff Davis Media is $1.6 million per year and increases to $1.8 million in 2009 and $2.0 million in 2014.”

Comments are closed.