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CNET: the story on HearLore | HearLore
CNET
Halsey Minor and Shelby Bonnie launched a 24-hour cable network about computers and technology in 1992, transforming their backgrounds at PepsiCo and Disney into a media empire that would eventually dominate the digital landscape. Their vision extended beyond the internet, as they produced four pilot television programs including CNET Central, The Web, and The New Edge, which aired on the USA Network and later the Sci-Fi Channel. This multimedia approach was revolutionary for its time, blending traditional broadcast media with emerging digital platforms to create a unique ecosystem for technology news. Ryan Seacrest, who would later become a household name, first gained national prominence as the host of The New Edge, showcasing the site's ability to launch careers alongside its content. The online version of CNET launched in June 1995, followed by an initial public offering in July 1996, where it traded on the NASDAQ National Market under the ticker symbol CNWK. The company's early success was not without legal challenges, as it was sued by Snap Technologies in 1998 over trademark infringement regarding the domain name Snap.com, highlighting the fierce competition for digital real estate even in the mid-1990s.
Acquisitions And Expansions
CNET Networks aggressively expanded its portfolio through a series of strategic acquisitions, beginning with the purchase of the Swiss-based company GDT in July 1999, which was later renamed to CNET Channel. The company's growth trajectory accelerated with the acquisition of comparison shopping site mySimon for $736 million in January 2000, followed by the purchase of ZDNET for approximately $1.6 billion in October 2000. These moves were part of a broader strategy to dominate various segments of the technology market, including business management, gaming, and consumer electronics. In 2001, CNET acquired TechRepublic for $23 million in cash and stock, providing content for IT professionals, and in 2002, it acquired Smartshop, an automated product catalog and feature comparison technology company. The company also ventured into photography with the acquisition of Webshots for $70 million in July 2004, which was later sold to American Greetings for $45 million in October 2007. The expansion continued with the acquisition of Metacritic in August 2005 and Chowhound in September 2006, creating a diverse array of online properties that catered to different interests and demographics. However, this rapid growth was not without its challenges, as the company faced significant financial losses during the dot-com crash, leading to the closure of several properties and the layoff of hundreds of employees.
Who founded CNET and when did they launch the network?
Halsey Minor and Shelby Bonnie launched CNET as a 24-hour cable network in 1992. They transformed their backgrounds at PepsiCo and Disney into a media empire that would eventually dominate the digital landscape.
When did CBS Corporation acquire CNET Networks and for how much?
CBS Corporation announced the purchase of CNET Networks for US$ 1.8 billion on the 15th of May 2008. The acquisition was completed on the 30th of June 2008.
What happened to CNET Gamecenter and when was it closed?
CNET Gamecenter was closed on the 7th of February 2001 as part of a redundancy reduction effort. The site received between 50,000 and 75,000 daily visitors by late 2000 before the closure.
Why did CNET disqualify the Hopper with Sling from the CES Best in Show award in 2013?
CBS abruptly disqualified the Hopper with Sling because Dish Network was in active litigation with CBS. The conflict of interest led to the award being jointly given to the Hopper with Sling and the Razer Edge on the 31st of January 2013.
When did Red Ventures acquire CNET and for what price?
Red Ventures announced the acquisition of CNET from ViacomCBS in September 2020. The transaction was completed on the 30th of October 2020 for $500 million.
Who bought CNET from Red Ventures and when was the deal finalized?
Ziff Davis reached an agreement to buy CNET from Red Ventures for $100 million on the 6th of August 2024. The acquisition was completed in the third quarter of 2024.
The year 2006 marked a turning point for CNET Networks as it faced a significant corporate scandal involving stock options backdating that occurred between 1996 and 2003. Shelby Bonnie resigned as chairman and CEO in October 2006, along with two other executives, following the revelation of the scandal, which led to the firm restating its financial earnings over 1996 to 2003 for over $105 million in resulting expenses. The Securities and Exchange Commission later dropped an investigation into the practice, but the damage to the company's reputation was already done. Neil Ashe was named as the new CEO, tasked with stabilizing the company and restoring trust among investors and employees. The scandal also had personal consequences, as James Kim, an editor at CNET, died in the Oregon wilderness in December 2006, prompting a memorial show and podcasts dedicated to him. The leadership changes and financial restatements were part of a broader effort to address the company's internal issues and prepare for future growth. Despite these challenges, CNET continued to innovate, launching BNET, a website targeted towards business managers, in March 2007, which had been running under beta status since 2005. The company's ability to navigate these turbulent times demonstrated its resilience and adaptability in a rapidly changing media landscape.
The CBS Era And Legal Battles
On the 15th of May 2008, it was announced that CBS Corporation would buy CNET Networks for US$ 1.8 billion, with the acquisition completed on the 30th of June 2008. Former CNET Networks properties were managed under CBS Interactive, which acquired many domain names originally created by CNET Networks, including download.com, downloads.com, upload.com, news.com, search.com, TV.com, mp3.com, chat.com, computers.com, shopper.com, com.com, and cnet.com. The company also held radio.com until CBS Radio was sold to Entercom in 2017. The CBS era was marked by significant legal challenges, including a lawsuit in 2011 by a coalition of artists led by FilmOn founder Alki David for copyright infringement by promoting the download of LimeWire, a popular peer to peer downloading software. Although the original suit was voluntarily dropped by Alki David, he vowed to sue at a later date to bring expanded action against CBS Interactive. In November 2011, another lawsuit against CBS Interactive was introduced, claiming that CNET and CBS Interactive knowingly distributed LimeWire. The company also launched a Spanish language sister site under the name CNET en Español on the 19th of September 2013, which focused on topics of relevance primarily to Spanish-speaking technology enthusiasts. The site offered a new perspective on technology and was under the leadership of managing editor Gabriel Sama, with a robust reviews section led by Juan Garzon. However, the site was eventually closed on the 11th of November 2020, following Red Ventures' acquisition, leaving the largest tech site in Spanish in the US out of the market.
The Red Ventures Controversy
Red Ventures announced in September 2020 that it would acquire CNET from ViacomCBS for $500 million, with the transaction completed on the 30th of October 2020. The new ownership brought significant changes to the company, including the use of artificial intelligence to generate content, which began in November 2022. CNET was criticized for failing to disclose that it was using a machine to write articles and for using human bylines on some AI-generated content until caught by independent investigators. The company reviewed those articles in January 2023 after many were found to contain serious errors and plagiarized material. Employees unionized in response to the scandal and layoffs, saying AI-generated content posed a danger to their professional reputations. A former staffer demanded that her byline be removed from the site, in order to protect her reputation if her articles were revised by AI. The controversy also led to the deletion of thousands of old articles from the website in August 2023, in an effort to raise the search engine optimization rankings on Google Search. Google said deleting articles to optimize for search engine rankings is not a good practice, and the company's reputation suffered as a result. The approximate halving of CNET's value under Red Ventures' ownership is attributed to interest rates, a slower ad market, and the reputational damage to CNET caused by the AI scandals. In January 2024, Axios reported that Red Ventures was exploring a sale of the website, with a goal of attaining at least $250 million for it. The site was profitable at the time, but the challenges it faced were significant.
The Ziff Davis Acquisition
On the 6th of August 2024, the New York Times reported that Red Ventures had reached an agreement to sell CNET to Ziff Davis for $100 million, subject to regulatory approval. The acquisition was completed in the third quarter of 2024, marking a new chapter in the company's history. The sale came after years of controversy and financial challenges, but Ziff Davis saw potential in the company's brand and content library. The acquisition was part of a broader trend of consolidation in the media industry, as companies sought to acquire established brands with strong digital presence. Ziff Davis, a publicly traded Japanese media and technology company, had previously been involved in the technology media space, having acquired Ziff Davis from SoftBank in 2001. The new ownership was expected to bring fresh perspectives and resources to the company, helping it to navigate the challenges of the modern media landscape. The acquisition also raised questions about the future of CNET's editorial content and its commitment to journalistic integrity, as the company sought to rebuild its reputation after the AI scandals. The deal was a testament to the enduring value of the CNET brand, despite the controversies that had plagued it in recent years.
Gaming And Multimedia Legacy
CNET launched a website to cover video games, CNET Gamecenter, in the middle of 1996, which was one of the first Web sites devoted to computer gaming news. According to the San Francisco Chronicle, it was one of the first Web sites devoted to computer gaming news, and it became a leading game-focused website. In 1999, PC Magazine named it one of the hundred-best websites in any field, alongside competitors IGN and GameSpot. According to Gamecenter head Michael Brown, the site received between 50,000 and 75,000 daily visitors by late 2000. In May 2000, CNET founded the Gamecenter Alliance network to bring Gamecenter and four partner websites, including Inside Mac Games, under one banner. Nielsen//NetRatings ranked Gamecenter the sixth-most-popular gaming website in the United States by mid-2000. The company's acquisition of Ziff-Davis and its ZDNet Internet business for $1.6 billion in July 2000 brought both GameSpot and Gamecenter under CNET, Inc.'s ownership. Later that year, The New York Times described the two publications as the Time and Newsweek of gaming sites. The paper reported that Gamecenter seemed to be thriving amid the dot-com crash, with its revenue distributed across online advertising and an affiliate sales program with CNET's Game Shopper website, launched in late 1999. However, the company's financial losses during the dot-com crash led to the closure of the Gamecenter Alliance network in January 2001, and Gamecenter itself was closed in a redundancy reduction effort on the 7th of February 2001, as GameSpot was the more successful of the two sites. Around 190 jobs were cut from CNET during this period, including at least 20 at Gamecenter, according to the San Francisco Chronicle.
Editorial Integrity And Controversies
In January 2013, CNET named Dish Network's Hopper with Sling digital video recorder as a nominee for the CES Best in Show award, which is decided by CNET on behalf of its organizers, and named it the winner in a vote by the site's staff. However, CBS abruptly disqualified the Hopper, and vetoed the results because the company was in active litigation with Dish Network. CNET also announced that it could no longer review any product or service provided by companies that CBS are in litigation with, which also includes Aereo. The new vote subsequently gave the Best in Show award to the Razer Edge tablet instead. Dish Network's CEO Joe Clayton said that the company was saddened that CNET's staff is being denied its editorial independence because of CBS' heavy-handed tactics. On the 14th of January 2013, editor-in-chief Lindsey Turrentine addressed the situation, stating that CNET's staff were in an impossible situation due to the conflict of interest posed by the situation, and promised that she would do everything within her power to prevent a similar incident from occurring again. The conflict also prompted one CNET senior writer, Greg Sandoval, to resign. The decision also drew the ire of staff from the Consumer Electronics Association, the organizers of CES; CEO Gary J. Shapiro criticized the decision in a USA Today op-ed column and a statement by the CEA, stating that making television easier to watch is not against the law. It is simply pro-innovation and pro-consumer. Shapiro felt that the decision also hurt the confidence of CNET's readers and staff, destroying its reputation for editorial integrity in an attempt to eliminate a new market competitor. As a result of the controversy and fearing damage to the show's brand, the CEA announced on the 31st of January 2013, that CNET will no longer decide the CES Best in Show award winner due to the interference of CBS, and the Best in Show award was jointly awarded to both the Hopper with Sling and Razer Edge.