Google To Acquire Stake in CNet?

Nearly completely missed amid the noise around Microsoft’s takeover offer of Yahoo was speculation Friday that Google may be looking to acquire at a stake in San Francisco-based CNet.

CNet shares were up 7% Friday based on the rumors. Last month, a group of investors began gathering shares of CNet and desired to exert influence on the makeup of the board of directors.

Google investing in CNet in exchange for control over some or all of the advertising inventory isn’t a ridiculous proposition. Microsoft recently invested in Facebook in connection with an advertising deal. And in 2005, Google took a 5% stake in AOL for $1 billion.

Comments

[User 137633]

"Another scenario is that these rumors have originated with call buyers who took a hit after CNET issued lackluster guidance this week and were left holding the bag."

Seems a lot more likely to me.

[Tom B]

CNet is very unimpressive. I hope GOOG doesn't blow cash on it. Maybe MSFT can be conned into making a bid; if MSFT screwed up CNet, it would be no great loss to the world.

[Long-ShortGuy]

What would be the reasoning behind Google investing in CNET? More captive ad inventory? The MySpace deal didn't work out so well for GOOG, so I'm not sure they're ready to rush into another of these deals.