Digital media company Ziff Davis (NASDAQ:ZD) is acquiring CNET from Red Ventures, further strengthening its portfolio of technology-focused online news brands.
The New York Times was the first to report that the company is buying CNET for more than $100 million and said that Ziff Davis is considering further acquisitions.
A Red Ventures spokeswoman declined to respond to Seeking Alpha's request for comment on the details of the deal.
CNET complements the company's portfolio, which owns tech names like Mashable, PC Mag and Lifehacker. Ziff CEO Vivek Shah told the NYT that CNET was part of the strategy, as it has about $800 million in cash.
Shah predicted more deals across the industry as tech giants like Google and Meta “grab an ever-larger share of digital advertising spending” and advances in artificial intelligence threaten to further disrupt the digital media landscape, the report said.
“There is enough uncertainty that might convince people to say, ‘I don’t know if I want to stick around to find out what’s going to happen… But I have a very clear and optimistic view on the content,’” Shah told the NYT.
Shah told the NYT that he pursued CNET in part because it is a well-known brand in the industry and its sizable audience will give Ziff Davis greater leverage among advertisers looking to reach tech consumers. CNET was purchased by Red Ventures in 2020 for about $500 million.
Ziff (ZD) shares are Down 40% So far this year, while the benchmark S&P is rose almost 9%.
