Michael Arrington has made no secret of his ambitions to off CNET. The TechCrunch editor might want to spend some time studying the ways of his prey, though, before he moves in for the kill. For example: Gadget critics normally spend time with the devices they report on before reviewing them. Citing an embargo he didn't care to observe, Arrington panned the Flip Mino camcorder without ever touching it.
They'll let just about anyone blog these days, won't they? News.com's latest addition: recovering adman Chris Matyszczyk, who writes under the rubric "Technically Incorrect," and reminds me a bit of Dan Lyons's alter ego, Fake Steve Jobs — except that, having met Matyszczyk briefly, I think this is the real thing, not a put-on person. Matyszczyk's fantasy phone call between Hillary Clinton and Mark Zuckerberg is hilarious: Clinton blames Zuckerberg for her loss to Obama, and then hits the paper billionaire up for a donation. What's really funny: Matyszczyk is outsidery enough not to mention the fact that Zuckerberg's cofounder, Chris Hughes, left the social network early on to run Obama's Web campaign. Zuckerberg's posse really is at fault, and not in a metaphorical Facebook-generation way.
CBS sales chief Jo Ann Ross told the audience at EconAds that most of the Web-only advertising inventory acquired in the CNET deal will be brokered by CBS Sports, according to comments at PaidContent's EconAds seminar in New York yesterday — presumably because the two properties share similarly male-dominated audiences. Finance show Wallstrip has struggled under the CBS News sales team, though, probably because the younger audience aren't buying the Viagra and adult diapers which pay Katie Couric's lavish salary. [Silicon Alley Insider]
CNET TV personality Natali Del Conte has recorded outtakes from her Loaded Web-video show. The highlight: Del Conte's reinterpretation of Flashdance. This makes us think of an obvious synergy play, now that CBS is buying CNET. CNET hired Del Conte and moved her to New York specifically to get her airtime talking about gadgets on the major broadcast networks. CBS, last I checked, is a major broadcast network. If CBS is serious about reversing its news division's aging demographics, CBS should move Loaded from the Web to primetime. Heck, Katie Couric's not doing so well in the anchor seat. Les Moonves, why not give Natali a spin?
How'd the CBS-CNET merger go down? Without much involvement from CBS Interactive head Quincy Smith, it turns out. Most of the negotiations with CNET CEO Neil Ashe went through Fredric Reynolds, Executive Vice President and Chief Financial Officer of CBS. Occaisionally, CBS CEO Leslie Moonves stepped in to move things along. That and more surprises in our timeline of the deal, below.
The New York Times has learned a hard lesson: Say what you like about CBS Interactive head Quincy Smith — just don't criticize his duds. The bastion of class consciousness falsely claimed that he was wearing white shoes before Memorial Day — a big no-no among the ruling elite, where white shoes, seersucker and summer dresses are officially verboten except between the holiday that marks the start of the summering season and Labor Day, which marks the end.
Spotted at the MashBash in New York City on Saturday, CNET reporter Caroline McCarthy with Tumblr founder David Karp and Michelle DeForest of NextNewNetorks. Karp and McCarthy are officially an item we understand, which warms our geeky hearts. Can you suggest a better caption? Do so in the comments, and the winning one will become the new headline on this post. Friday's winner, in a close one: rwe112, for "Now it's time on Sprockets when we dance." (Photo by Leora Zellman)
In an address to employees after a tour of the CNET building in SoMa, CBS chairman Leslie Moonves proclaimed, "CNET is CBS Interactive's worldwide headquarters." It might have been meant to stoke employees on the deal. But it could just as well remind workers who just went through a round of layoffs that they now face redundancy with CBS's own online publishing teams.
After buying CNET for $1.8 billion, CBS CEO Les Moonves is getting around to inspecting his new property next Tuesday, we hear. Moonves is visiting CNET's San Francisco headquarters to address the troops. So far, beaten-down CNETters, weary of the fight with hedge fund Jana Partners, seem mostly supine in CBS's embrace. Show some spirit, guys! We suggest testing your new CBS overlords' sense of humor by wearing some 2006-vintage "I Hate Les Moonves" T-shirts, from the days of his tussles with Howard Stern. Ironically retro, of course.
Old school ad agencies on Madison Avenue know and understand CBS, Inc. They've been selling its inventory to clients since 1928. So it's no wonder the ad agencies are so happy to see CBS take control over CNET, one of those Web properties everyone's saying they have to put money into. PaidContent rounded up the gushing and we've pared it down, below.
Under the wing of CBS, CNET CEO Neil Ashe will continue to earn his $700,000 salary. He'll also get a 100 percent bonus and, in the next 10 days, a long-term stock award of "not less than $1,625,000 per year," according to a 8-K CNET filed with the SEC yesterday. CNET CFO Zander Lurie will get such a stock award worth "not less than $1,000,000 per year."
If CBS were to greenlight a TV series about life at a modern media giant, the director would find it hard to cast anyone but Quincy Smith as himself. Call it 60 Seconds, a version of the news show sped up for the Web. His $1.8 billion CNET buy is just the latest episode in the life of the fast-talking president of CBS Interactive. Smith is sui generis; the stereotype, which grates on him but fits, is that of a frenetic dealmaker. Last month, he said he was looking for "the next YouTube"; instead, he bought a company which, having been founded in 1992, is eight times older than the current incarnation of CBS. CBS handlers offered to have him speak to me; I accepted. In the middle of the mile-a-minute conversation-argument, I think we both wondered what we'd gotten ourselves into. A partial transcript — the most I was able to type out while trying to keep up with Smith's banter:
CNET has been eyed by Quincy Smith, CBS's hyperacquisitive online chief, long before he sealed a $1.8 billion deal to buy the company. As a banker at Allen & Co., CNET was his client. "At one point, he wrote this major presentation about how valuable content was," a tipster tells us. "The single example in it was CNET. It was basically his only idea." An unfair dig? Perhaps. There is little like CNET on the market — a pure play on professional online content worth $1.8 billion? It can't be found. But the lack of a direct competitor may have also been CNET's undoing — the mixed blessing that brought it under attack by activist investors and led it to CBS's waiting arms.
Shareholder activists Jana Partners and company got their way, sort of. CNET has new management, and in fact ownership: CBS, which will purchase CNET for $11.50 a share, or $1.8 billion. That's about $150 million more than Google paid for YouTube, but there is no buyer's remorse from CBS as of yet. "The acquisition will make CBS one of the 10 most popular Internet companies in the United States," reads a statement from CBS, its traffic now fattened by visits to CNET sites CNET, ZDNet, GameSpot.com, TV.com, MP3.com, News.com, and UrbanBaby. CNET CEO Neil Ashe's internal email is copied below.
A News.com reporter covered the death toll in 28 words before spending the next 613 trying to figure out if the recent earthquake in China near the manufacturing hub of Chengdu would hurt multinational technology companies. Which is only slightly less tasteless than the conversation which broke out on tech news tracker Techmeme — where the conversation revolved around Robert Scoble shouting "first!" You stay classy, technosphere.
Myopic Wall Street often uses a microscope when it should use a telescope. The rot at Web publisher CNET goes far beyond the particulars of one quarter. Forget the question of by how many cents per share it missed earnings expectations, and ask yourself this: Why isn't CNET gushing cash? Its established brands in tech news and reviews should be printing money. No wonder hedge fund Jana Partners is trying to unseat its board. I'm not sure Jana has any plan, other than throwing the boardroom rascals out. So what's the problem, and what to do?
