CNET sells Webshots for half price
p2pnet news | Product News:- “Don’t blink,” says the Webshots logo. But somebody did.
“CNET has had a difficult time lately,” wrote TechCrunch’s Michael Arrington almost exactly a year ago, going on:
“CEO Shelby Bonnie resigned earlier this week in the midst of an option repricing scandal that has already claimed General Counsel Sharon Le Duy, Senior Vice President Heather McGaughey of Human Resources, and former CFO Doug Woodrum.
“And recent data suggests that CNET’s overall traffic isn’t just flat, it’s declining at an alarmingly swift pace. A Jeffries & Company report released on Wednesday points to a third quarter 50% drop in CNET traffic compared to the same period in 2005, including a whopping 69% drop in traffic at WebShots.”
CNET bought Webshots for $70 million in 2004.
But now it’s getting rid of it for a little more than half of what it paid.
It’s sold Webshots to American Greetings, “for approximately $45 million in cash,” says a CNET investor relations statement.
“This transaction enables CNET Networks to continue to focus on key areas of growth,” it has CNET Networks CEO Neil Ashe saying.
“We’re pleased that Webshots can become an important ingredient to American Greetings business.”
Webshots founder Narendra Rocherolle and his business partners, “first sold the site to ExciteAtHome for $82.5 million in 1999, near the height of the dot-com boom,” says Associated Press, adding:
“After ExciteAtHome went bankrupt, Rocherolle and his partners bought Webshots back for just $2.4 million in 2002 and subsequently sold it to CNet.”
Are CNET’s troubles serious?
Stay tuned.
Also See:
TechCrunch – CNET Is Bleeding Traffic, October 13, 2007
statement – NET Networks Announces Sale of Webshots to American Greetings, October 25, 2007
Associated Press – CNet sells Webshots for $45 million, October 25, 2007
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