CBS/CNET + NYT/About.com = Media Powerhouse or a Big Mess?

If complementary product lines is one consideration in successful mergers, another one might very well be a shared set of values and a vision to tackle the future challenges and opportunities facing an organization.

In that context, I am thinking that maybe CBS (CBS)/CNET (CNET) and New York Times (NYT)/About.com would make for good merger buddies.  I will give this some more thought… but this is a potentially interesting merger not only because of the fits in terms of content and media, but also because both management teams seem to be opening up their data more and more.

If the NYT is indeed about to open up its content via APIs, then NYT is essentially about to do what CBS has started to do with some of its video content.  Of course, Web 1.0 (1994-2003) hammered print media companies, and I think Web 2.0 (2004-present) is nailing TV-centric media companies… which explains why TV-centric media companies like News Corp. (NWS), CBS,  Disney (DIS) and NBC (GE) are displaying schizophrenic and multiple personality disorders: on the one hand, they want their content everywhere, but they fear giving up control, so the two sides of their brain don’t seem to get along (forget their limbs!)

Anyway, what is also interesting, frankly, is that apart from visions to open up, the content starts to fit well:

• NYT/About.com and CBS are very news, sports, entertainment and lifestyle oriented,

whereas

• CNET is extremely tech-oriented.

This would mesh well across media.

• NYT.com, CNET and About.com are actually pretty strong online,
• CBS is extremely strong in TV, radio and outdoors.  It lacks print (it does own Simon & Schuster, the venerable publishing house) but it can certainly cross-promote talent well.

Of course, this would not be a merger per se, rather, an acquisition.  CBS just paid $1.8B for CNET and combined that would be worth $15B.

NYT is worth some $2.5B… but with shareholder activists, bigger media companies and hedge funds gunning for the company, would a sale to CBS for shares and or cash be so bad?  I don’t know.  It would help the Sulzbergers find a home at CBS.  Incidentally, the Sulzbergers are otherwise looking at landing at Rupert Murdoch’s News Corp., who last year bought Dow Jones, publisher of Wall Street Journal and Barron’s for over $5B.  We can see the Rupert Murdoch vs. Sumner Redstone rivalry escalating before our eyes…

I am not sure if this will happen… but crazier things have happened.