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GameSpot Owner CNet Eyed for Hostile Take Over
Posted by Brian Crecente at 5:20 AM on January 8, 2008
The New York Times is reporting that a consortium of "prominent investment funds" have managed to grab up 21 percent of CNet and are now working to kick out the company's directors and take over the majority of the company's board.
The Times piece is based on people who were privy to a memo sent from the consortium to the board about two weeks ago. Among CNet's assets, of course, are gaming site GameSpot and tech site TechCruch.
The consortium is led by Jana Partners and includes Sandell Asset Management, a venture capital firm and entrepeneur Paul Gardi, the guy behind Ask Jeeves tech.
No word on if or how this could possible impact GameSpot.
Investors Said to Seek a Takeover of CNet [NYT]
Comments (AU Comments · US Comments)
There are currently no AU comments for this post.
Dragon_Warrior
Posted 7:33 PM 7/1/08
@Rembrandt:
They had better not mess with GameFAQS. That's one of the greatest gaming sites on the web.
Dragon_Warrior
Sawboss
Posted 7:13 PM 7/1/08
The butler did it.
Sawboss
Zombie_Moogle
Posted 5:09 PM 7/1/08
I can't be the only one that took the "random" firing of a famous reviewer as a bad commercial omen, so I can't be the only one that thinks this is the fruition of the forementioned, right?
Zombie_Moogle
Blah8
Posted 5:01 PM 7/1/08
So long as they don't touch GameFAQs, I'm fine with it. And, despite this whole Gerstmann ordeal, GameSpot does have a lot of good information and a quality site - even if the people running it aren't too good.
Blah8
SpiBoy
Posted 4:59 PM 7/1/08
@Omnisleep: I agree. CNET owns TechRepublic, which is not TechCrunch of course.
SpiBoy
danecy
Posted 4:46 PM 7/1/08
Whenever I hear hostile takeover, I picture pirates invading the board room. Yarr.
danecy
brandonf
Posted 4:14 PM 7/1/08
I somehow doubt a consortium of investment bankers would hold the value of journalistic integrity above all the money that could be made by kowtowing to corporate entities whos products they review. If anything the types that ousted Gerstman could proliferate exponentially.
brandonf
Draconis
Posted 4:03 PM 7/1/08
When it rains, it pours?
Draconis
TheIrishNinja (XBL = IrishNinja2099, PSN = TheIrishNinja
Posted 2:47 PM 7/1/08
@huginn: oh, dont get me wrong, i hope you're right and its a complete overhaul in the right direction, i just wish i was more optimistic about it.
personally, im not overly hung up on the issue as i more or less stopped viewing gamespot back when they went pay (i tell a lie, i dug the gamespotting stuff) but i know many others are big fans.
TheIrishNinja (XBL = IrishNinja2099, PSN = TheIrishNinja
Kevyn
Posted 2:47 PM 7/1/08
TechCrunch*
Kevyn
Jonax
Posted 2:46 PM 7/1/08
POPCORN! Get your sweet buttery popcorn here, served cold as often preferred!
Also available for preorder - Boxes of confetti, released in time for the end result. Get it in bright colours or black - Be ready for any outcome, for none can say how things will turn out.
Some of the many high-quality products provided by ALAKaBi Inc. (Ain't Life a Karmic B*tch).
Jonax
Kevyn
Posted 2:46 PM 7/1/08
Since when was TechCrunch owned by CNet? The New York Times is comparing news.coms traffic to TechCrunchs traffic. As Omnisleep says, TechCruch is a competitor.
Kevyn
hahnchen
Posted 2:17 PM 7/1/08
Excellent, fucking excellent. There really isn't anything better at kicking executives into gear than a hostile takeover.
hahnchen
comedy
Posted 2:11 PM 7/1/08
executive powder! a million and one uses!
comedy
Rembrandt
Posted 2:11 PM 7/1/08
What's this going to do to GameFAQs? Aren't they also owned by CNET? Or merged with them? Or whatever?
Rembrandt
okenny :)
Posted 2:09 PM 7/1/08
@okenny :): Pictures of Laura Croft landing on an aircraft carrier while flying under a giant banner that reads mission accomplished will plaster the internet :) Shenanigans!!
okenny :)
jayntampa
Posted 2:08 PM 7/1/08
@Digitalguardian (GOD DAMN EWOKS!): 21% is enough of a vote to force a change in management by placing voting members on the board, so it is actually enough if no one else owns more or much more. It's not enough when there is an owner with over a 50% stake, which, there is not in this case.
jayntampa
PissedPS3Fan
Posted 2:08 PM 7/1/08
What would be totally sweet, though, is if this thing actually happens, the new board gives Gerstmann back his job.
Or even better, the new "owners" of C|Net dismantle the company and sell it off as scrap.
Down with C|Net!
PissedPS3Fan
okenny :)
Posted 2:07 PM 7/1/08
Wouldn't it be hilarious if the potential buyer was Eidos?
okenny :)
fonzy
Posted 2:06 PM 7/1/08
Well, Kotaku can thank Gamespot for claiming this user *points thumb to himself* so maybe our numbers will increase still! FOR THE MOTHAHLAND!
fonzy
Erwin211
Posted 2:03 PM 7/1/08
@theprof00: Thanks, but it actually wasn't intended, but it worked out in my favor!
Erwin211
theprof00
Posted 2:02 PM 7/1/08
@Erwin211: im gunna go check to make sure you got there in one piece
theprof00
theprof00
Posted 2:01 PM 7/1/08
@Erwin211: lol, u in the wrong place, but i;m guessing that's the joke, funny though
theprof00
Erwin211
Posted 2:00 PM 7/1/08
@Erwin211: What the hell? How did I get to this story? My newfound senility? Sorry about that, wrong story.
Erwin211
Digitalguardian (GOD DAMN EWOKS!)
Posted 2:00 PM 7/1/08
I don't know much about this stuff, but 21% does not a hostile takeover make. Granted it's still a substantial stake in the company.
Digitalguardian (GOD DAMN EWOKS!)
BtownDesignGuy
Posted 1:59 PM 7/1/08
I don't think that the decision to take over CNet has much to do with Gamespot. I mean, if CNet is underperforming, then yeah, Gamespot's performance has a small impact on what's going on.
But without any numbers to show that Gamespot really is a ghost town after Gerstmann-gate, I think that all we're looking at here are people who think CNet can make more money, and if it can, they'd like a cut.
BtownDesignGuy
Erwin211
Posted 1:59 PM 7/1/08
₤99? Pretty pricey for a remote.
And with that, I have become my grandmother.
Erwin211
huginn
Posted 1:55 PM 7/1/08
@TheIrishNinja (XBL = IrishNinja2099, PSN = TheIrishNinja: like the name. :)
And given the shit Gamestop has had with Gerstmann, a new management might be the best thing for them(or atleast gamespot). Like starting a new QB, a new CEO can show people a rebirth and a new start, something gamestop direly needs since it's accounting goodwill with gamers is in the shitters.
@kotaku Cnet's Stock prices have been going down since the start of the year (and oddly they were rallying during the Gerstmann incident), Which means it might not be so hostile after all.
huginn
Figcoinc
Posted 1:54 PM 7/1/08
EXECUTIVE FIGHT!!!!!!!
(grabs a bowl of popcorn)
Figcoinc
Omnisleep
Posted 1:54 PM 7/1/08
TechCrunch is a competitor, not a CNET asset.
Omnisleep
nintend0nick
Posted 1:53 PM 7/1/08
What's that word I'm looking for, ahh, that's right, Stock Options. All of these directors who will get "kicked out" almost undoubtedly own shares of C|Net and will benefit greatly when they sell off their shares come time for the take over. hardly an eye for an eye, who cares anyway. Maybe with some amoutn of luck the new owners will bring some reputability to Gamespot that has been missing for over 5 years.
nintend0nick
RawSteelUT
Posted 1:51 PM 7/1/08
@SaintAnima: La-Li-Lu-Le-Lo! La-Li-Lu-Le-Lo! La-Li-Lu-Le-Lo!
RawSteelUT
edb87
Posted 1:51 PM 7/1/08
@TheIrishNinja (XBL = IrishNinja2099, PSN = TheIrishNinja: Beat me to it, Ninja.
But yeah, sweet irony is awesome.
edb87
theprof00
Posted 1:49 PM 7/1/08
I smell a conspiracy to bring back Gamespot's reputation. I remember when i worked at a pizzeria in boston and we got a bad score on the phantom gourmet, put up a sign-"Under New Management", replaced the owner with his brother, and didn't change a thing, got a much better score a month later.
theprof00
SaintAnima
Posted 1:47 PM 7/1/08
Everything was planned from the start...by The Patriots.
Anyway, what a year. It's only January, and lots of stuff going down. Let's hope it's better for Gamespot...
SaintAnima
jayntampa
Posted 1:46 PM 7/1/08
CNet is ripe for a takeover, as was pointed out in the article -- they're underperforming. We have no way of knowing whether it would be good for gamers ... but, I don't think it could be worse. A totally new management team is pretty much the only way I can foresee them regaining any level of respect with the gaming community.
jayntampa
taomaster99
Posted 1:45 PM 7/1/08
still going to be a crap site!
taomaster99
BruzeWayne
Posted 1:44 PM 7/1/08
"...No word on if or how this could possible impact GameSpot."
couldn't hurt, thats for damn sure.
BruzeWayne
eugaet
Posted 1:44 PM 7/1/08
Honestly? This could only be a good thing.
eugaet
Erwin211
Posted 1:44 PM 7/1/08
"a consortium of 'prominent investment funds'"?
Those crazy Illuminati and their hostile takeovers.
*smiles and wags finger*
Erwin211
Maldron
Posted 1:43 PM 7/1/08
TO THE OBSERVATION SPIRE!
Maldron
TheIrishNinja (XBL = IrishNinja2099, PSN = TheIrishNinja
Posted 1:42 PM 7/1/08
Funny how i imagine some're gonna assume this is good for gamers/gamespot.
"Meet the new boss, same as the old boss..."
TheIrishNinja (XBL = IrishNinja2099, PSN = TheIrishNinja
Stormrider900
Posted 1:41 PM 7/1/08
Let's hope Josh Larson gets a pink slip for his trouble! That would be poetic justice at its absolute finest.
Stormrider900
smellyelite
Posted 1:39 PM 7/1/08
Is it me or does it seem like everyone is getting taking over these days?
smellyelite
vanderblade
Posted 1:38 PM 7/1/08
@jayntampa: I'm smiling for the same reasons. Let's hope this coup doesn't result in a worse administration.
vanderblade
Car2oon
Posted 1:37 PM 7/1/08
Gerstmann Gate: Chapter 2
Car2oon
remanance
Posted 1:37 PM 7/1/08
*News just in: Gamespot raises all the PS3 scores and finally get a boost in AAA titles!* Ah, that'd be nice.
Or even better:
*Games that are actually DIFFERENT from your average game will now stop getting 8.5s for not copying.*
Coughs Shadows of the Colossus Coughs.
remanance
WPack911
Posted 1:36 PM 7/1/08
Looks like the a-holes that run that brand and it's sites just might get their's after all. More power to these investment firms on this one.
-WPack911
WPack911
bluesquareapple
Posted 1:36 PM 7/1/08
Ask Gerstmann?
bluesquareapple
Witzbold
Posted 1:33 PM 7/1/08
Oh my, this should be interesting.
Witzbold
legacyed
Posted 1:32 PM 7/1/08
Hopefully an overhaul of CNet's directors will serve to create an atmosphere at Gamespot that is more friendly to honest and responsible journalism.
Hell, maybe this will even clear the way for Jeff to come back.
legacyed
shindokie
Posted 1:30 PM 7/1/08
@jayntampa:
An eye for an eye i guess. (or an eye for like how many directors they are)
shindokie
Wyld
Posted 1:30 PM 7/1/08
1 - create something
2 - put it for sale
3 - not yours anymore!
Watchmen Movie is coming.
Wyld
Peryite
Posted 1:29 PM 7/1/08
Alright!
Hostile corporate takeover, 80's style!
Peryite
jayntampa
Posted 1:25 PM 7/1/08
The thing I love about this story is that if it occurs, the same people that gave Gerstmann the boot ... will get booted. It's just one of those small ironies that help me enjoy life.
jayntampa
jimmysnucka
Posted 2:59 PM 7/1/08
It's like The Secret of my Succe$$, but doesn't have the Yello song :(
dur bout bout, chic, chicka chicka
where's Helen Slater when u need her!
jimmysnucka