IGN, Mashable's parent company acquires CNET for over $100 million
What's the story
Ziff Davis, a leading digital media and internet firm, has announced its acquisition of tech news website CNET from Red Ventures.
The deal was confirmed by Ziff Davis's CEO Vivek Shah during an interview with The New York Times.
While the exact purchase price remains undisclosed, it is reported to be "more than $100 million."
This acquisition adds to Ziff Davis's portfolio of tech publications which includes Mashable, IGN, and Lifehacker.
Role reversal
A twist in tech publishing history
The acquisition signifies a historical role reversal. In 2000, CNET Networks Inc. purchased Ziff-Davis Inc., a then-dominant tech publishing company, along with its online services firm, ZDNet for $1.6 billion.
After two decades of divestments and realignments, Ziff Davis is now the one acquiring CNET from Red Ventures.
This turn of events marks a significant shift in the tech publishing landscape.
Market value
CNET's valuation and recent challenges
The reported purchase price of over $100 million is a significant decrease from CNET's $1.8 billion valuation when CBS acquired it in 2008.
Earlier this year, Axios reported that Red Ventures was seeking a buyer for CNET.
The tech news website has recently faced criticism for using generative AI to create some of its content, leading to internal upheaval and job cuts within the company.
Future prospects
Ziff Davis's optimistic outlook on content
Despite recent controversies surrounding CNET's use of AI in content creation, Ziff Davis proceeded with the acquisition.
Shah cited CNET's status as a "well-known industry brand" with a large audience that appeals to tech advertisers as reasons for the purchase.
"I have a very clear and optimistic view on content," Shah stated in his interview with The Times.
However, he did not elaborate on how AI might be incorporated into CNET's future publishing strategy under Ziff Davis's ownership.