CNET to Acquire Ziff-Davis

N E W   Y O R K,  July 19, 2000 -- CNET Networks is acquiring Ziff-Davis Inc. and its ZDNet subsidiary for $1.6 billion in stock, combining two ofthe Internet’s most prominent providers of technology news.

The deal announced today marks yet another twist in thecomplex corporate history of Ziff-Davis, a pioneer of thetechnology magazine industry and operator of the famed Comdexcomputer trade show — businesses the company has chosen to abandonin a bid to focus on its popular network of Web sites.

In that particular market, CNET is one of ZDNet’s top rivals,operating some of the most widely used news and comparison shoppingWeb sites on the Internet. The company, which made 10 acquisitionslast year and in February bought the MySimon comparison shoppingservice, also produces radio and television programming that isbroadcast in almost 100 countries.

Combined Audience of 16.6 Million

Together, the companies would have an online audience of 16.6million monthly users, CNET said in a statement, citing figuresfrom the research firm Media Metrix.

With the addition of ZDNet, CNET also will gain a major presencein Europe, Asia, North America and Latin America. CNET’sinternational holdings currently include only eight Web propertiesin the Asia-Pacific region.

“We’re creating a company with global reach and anticipatedrevenues in excess of half billion dollars next year,” said DanRosensweig, president and chief executive of ZDNet.

Under the takeover agreement, San Francisco-based CNET willexchange 0.3397 share of its stock for each share of Ziff-Davis and0.5932 share of CNET stock for each share of ZDNet, a separatelytraded company in which Ziff-Davis is the majority owner.

Technology Magazines in Stable

In addition to ZDNet, Ziff-Davis’ operations include an onlineeducation business and the unit that runs Comdex and other tradeshows. That business is being spun off as a separate company,Key3Media, under a previously announced plan.

The CNET deal comes just months after the New York-basedZiff-Davis sold its publishing business, including a stable ofwell-known technology magazines such as PC Magazine and Yahoo!Internet Life, for $780 million to the buyout firm Willis Stein &Partners.

CNET chief executive Shelby Bonnie will remain CEO of thecombined entity, while Rosensweig will become president. Thecompany would have 1,600 employees and more than $500 million inrevenue.

CNET and The Associated Press have a partnership under which theAP runs certain CNET news stories to supplement its own businessand technology reports.