1.08.2008
Underperforming Web Media Company Faces Buyout
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Private Equity investors are moving in on a traditional Internet company CNET, offering a new board and outside capital in an attempt to raise the stock or gain control of the company so changes can be effected.
SFGate points to the divestiture of Webshots as symptomatic. Webshots was trumped by Photobucket, started by 2 guys in a basement in Colorado in 2004-but presciently with unlimited bandwidth, a core part of their early strategy. They then moved west, raised capital, and were acquired by Fox for some $300 million.
The growth rate of CNET in terms of viewers had stalled, so it has become a target for JANA Capital and Alex Interactive Media.
The lesson: Don't impede growth and keep things simple for the user
SFGate points to the divestiture of Webshots as symptomatic. Webshots was trumped by Photobucket, started by 2 guys in a basement in Colorado in 2004-but presciently with unlimited bandwidth, a core part of their early strategy. They then moved west, raised capital, and were acquired by Fox for some $300 million.
The growth rate of CNET in terms of viewers had stalled, so it has become a target for JANA Capital and Alex Interactive Media.
The lesson: Don't impede growth and keep things simple for the user
Labels: cnet, photobucket
