Keeping the tech world informedCNET keeps the world abreast of the most important developments in the world of computers and the Internet. It is one of the few companies that publishes original content on the Internet, a decidedly expensive strategy, especially when successful competitors simply regurgitate information already in print. Halsey Minor founded CNET in 1992 with $5 million in venture capital from Microsoft co-founder Paul Allen. Intel owns a 5 percent stake in the company. Minor's intent was to develop a cable network devoted to computers and new technology, with a companion project on the Internet. In April 1995 it launched a weekly half-hour program on the USA Network, and cnet.com, which featured news, product reviews, and helpful tips. Today CNET has four technology-focused TV series, including CNET Central. It also has several Internet sites devoted to topics ranging from computer and technology news to web design, from online gaming to downloadable software.
CNET's brightly-colored, user-friendly sites consistently snag the best ratings in their category, and have evolved into a high-tech staple. Those in the business trust it to provide up-to-the-minute information, and those in the know look to CNET's product reviews before they buy. It's no surprise, then, that advertisers love CNET's sites, as they have has become the standard for tech professionals.
Snapping to attention
In 1995, Minor spent $25 million to create Snap!, a search engine and web portal. He was much criticized for the move because he was so late to the game, forcing him to play catch-up with established names such as Yahoo! and Excite. CNET went public in 1996, the same year it launched two new television programs: The Web, and TV.COM. The following year it introduced the web version of the E! channel, but sold its stake in the property soon afterwards.
In May 1998, CNET acquired U.Vision, a search service for buying computers online. The following month, NBC laid out $26 million for a 4.9 percent stake in CNET, then purchased a 19 percent controlling stake in the foundering Snap! portal. NBC increased its stake in Snap! to 60 percent and merged it with Xoom.com to create a new company, NBCi, in 1999. CNET now holds a 19 percent stake in the venture. Industry analysts expect Snap! to fare better now because of NBC's endorsement and marketing muscle.
Recent developments
In February 1999, CNET acquired AuctionGate Interactive, Inc., a computer auction site for both individual consumers and business-to-business dealings, as well as NetVentures, the owner of ShopBuilder (a system that creates online stores). The following month, it purchased KillerApp Corp., the company that runs killerapp.com, an online comparison-shopping service for computers and other consumer electronics. And to direct browsers (and investors) to its content, CNET launched a nationwide name-recognition campaign in June 1999.
Radio days
In January 2000, CNET announced a deal with Dallas-based AMFM Inc. to create an all-tech radio network. AMFM, whose acquisition by radio giant Clear Channel Communications will be completed by the end of 2000, will publicize its partnership with CNET on the stations it owns. The first co-branded station, at San Francisco's KNEW 910 AM, will have a shared ad sales force and will feature everything from breaking news feeds to CNET's trademark reviews of technology products and services.
Shopping and name-dropping
In March 2000, CNET also acquired online shopping site mySimon.com and changed its corporate name to CNET Networks, Inc. to reflect the inclusion of the various sites and services it now offers. The move was made in order to transform CNET into the "Internet's number one comparison shopping resource for computer and consumer electronics products."
Boosting its business-to-business e-commerce offerings, CNET acquired Apollo Solutions Inc. in July 2000 for $11.2 million in stock and cash. Apollo provides web-based applications that allow computer product resellers to obtain product information from manufacturers.
All over the world
Adding global reach across 25 countries in Europe, Asia, North America and Latin America to the technology information company, CNET acquired chief rival Ziff-Davis in July 2000. For $1.6 billion in stock, CNET bought Ziff-Davis's Computer Shopper, a computer buyer guide, and web site Smart Planet, an online educational service focused on the technology industry, and online property ZDNet. Ziff-Davis CEO Dan Rosensweig became president, while CNET President Rich Marino became chief operating officer; CNET chief exec Shelby Bonnie remained CEO of the combined entity. The new entity will have 1,600 employees and more than $500 million in revenue in 2001.
