CNET is on an acquisition spree, in keeping with its digital lifestyle credo it is pursuing: it is acquiring privately-held Twofold Photos, and its Webshots site. The news comes a day after Google announced it was buying rival site/service Picasa.

Webshots is a leading community/sharing photography site. Under the terms of the agreement, CNET Networks will pay $60 million in cash and $10 million of deferred consideration. The transaction is expected to close in Q3 this year.

Webshots has a desktop software which enables picture sharing. The company has also moved into wireless/mobile photography space and moblogging, as it is called. Its software also enables other mobile services like wallpapers and wireless picture sharing.

CNET expects that Webshots will contribute approximately $3.2 million and $3.7 million in revenue, and $1.7 million to $2.0 million in operating income before depreciation and amortization in Q4. As a stand-alone entity, Webshots is expected to generate revenues of $12 million to $13 million and operating income before depreciation and amortization between $6.75 million and $7.25 million for the full year 2004.

Quick take: the idea is to combine the community that Webshots has developed and package CNET’s own reviews on digital cameras and related products, along with shopping and comparison buying services.

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