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10-Q Watch: More CNET Acquisitions; SEC Options Inquiry Becomes Formal

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CNet Networks (Nasdaq: CNET) continues to make small acquisitions worldwide: in its 10-Q filed earlier today with SEC, some more names and prices (some of which have been disclosed earlier): During first half 2007, Cnet acquired Gamekult (Gameamp) in France and Land-is in Japan, and acquired the assets of ea3w.com and Stor-Age in China. Gamekult is a video game content site, while Land-is is a tech white-paper repository site. Ea3w.com is a home consumer electronics buying guide and Stor-Age is an online media site focused on providing information on storage technology. CNet paid an aggregate purchase price totaling $11.8 million for these acquisitions, consisting of $10.6 million paid in cash, $0.3 million in direct acquisition costs and a $0.9 million note payable due in July 2008 bearing interest at the rate of 4.0 percent.

SEE ALSO: CNET Acquires SportsGamer To Broaden Gaming Coverage

Meanwhile, as its expenses from ongoing litigation over stock option accounting keep mounting ($3 million in Q2), its revealed in the filing that SEC has issued a formal order of investigation and served subpoenas on certain of CNET Networks’ former officers in connection with its stock-option practices inquiry. SEC has been investigating informally since May last year. “CNET Networks is cooperating, and will continue to cooperate fully with the United States Attorney for the Northern District of California and the SEC.”

Aug 1, 2007 11:49 PM ET

Posted In: Legal, Companies, CNET

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