CBS Buys CNET; “No” Joy

It was announced earlier today that CBS is buying CNET, one of the top internet media companies in the world, for $1.8 billion dollars, ending a potential hostile takeover from some outside investors.

At first glance, this deal doesn’t make any sense to me. It would seem that CBS has learned nothing from the failed AOL/Time Warner merger of the past or any of the other television media companies that have bought online companies before. The two mediums don’t even seem all that compatible, though I’m sure someone would beg to differ.

The purchase at this price comes from the same people who, a year ago, claimed that they weren’t going to spend big money on online companies, and balked at purchasing YouTube for the same amount of money. That one would have made more sense to me already being a video masterpiece, especially with the vast reserves that CBS has to have at its disposal. Instead, they’re buying a company that, while I’ve loved going to their site and reading their reviews and recommendations on both software and hardware products, has hit some hard times, recently announcing layoffs to come.

Of course, this isn’t their first foray into buying other companies, as they also picked up for around $280 million, but that one also makes sense, being another media company where CBS has vast reserves and many clients it could promote.

Frankly, I’m not sure I like where all of this is going. Big companies are buying up a lot of these independents and suddenly the thing that made them unique is gone. I still lament Dell buying Alienware and taking away what Alienware stood for, turning it into a milksop version of its former hip and wild self and allowing companies such as Falcon Northwest to replace them. Specialization that we have all enjoyed is going away, and very soon, like AM radio, it’s going to seem like we’re all listening to the same thing everywhere we go.

But don’t get me wrong; if someone offers me a million dollars for any of my websites, I’d sell in a heartbeat!

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3 comments on “CBS Buys CNET; “No” Joy

  • As they say, young man: money talks and b.s. walks. AOL bought Netscape, and Netscape came back with Firefox. Perhaps others will do the same. Sometimes it’s easier to sit on the beach with your newly earned millions, than wage that war. Other times, you build to “that level” so some one will buy you out. Who can say. I’ll give you $1.5 mil. Monopoly money work for you?

  • I’m glad you caught yourself on that one. And you’re right, the smaller guy can always go and create something new, and truthfully that seems to be a trend, based on an article I read in the NY Times a few months back. But your example brings up another tragedy, as Netscape used to be my preferred browser back in the day before AOL took it over and messed it up, and now it’s gone.

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