CBS agrees to purchase CNET for 1.8 billion dollars, which works out to around $11.50 per share, resulting in an immidiate jump in trading price.
Analysts expect the stock price of CNET to fall as the company’s financial results have been poor over time. The increase in the revenue for Q2 was five percent, which is below average for a company supported by internet advertising. Further, the stock price has risen recently due to rumors of a buy-out by its former CEO. The stock price of CNET fell by about six percent in early hours of trading, and it is trading at 3.4x revenue, while the other online companies trade at approximately 7x.