New York Times and TechCrunch is reporting that a group of investors is set to takeover CNET Networks, which could mean employees being sacked from all operations worldwide.
The group, consisting Sandell Asset Management, Spark Capital, and entrepreneur Paul Gardi, sent a letter to the Board of Directors but it was rejected. The letter has not been published and a number of anti-takeover provisions are hampering the group to gain control of the board.
With 2,600 employees; the company is now starting to fall into a downward spiral. Profits weren’t increasing and also traffic has slumped. Also, only two out of the 18 Wall Street analysts have only bought shares into the company. It’s currently worth $1.3 billion; but that is currently disputed by many analysts, including TechCrunch’s Michael Arrington.
In recent years, CNET is slowly progressing being less technology-centric. It has begun buying out entertainment and gaming sites; and has bought FindArticles for $45 million for it’s BNET site. It sold of Webshots to American Greetings for $45 million. Most of the growth has been seen in its international markets.