CNET Networks (NASDAQ:CNET) today announced that it has entered into a definitive agreement to acquire the assets of ZOL and Fengniao, which operate the zol.com.cn and fengniao.com Web sites, respectively, in cooperation with Chinese subsidiaries and affiliates.
The transactions total $16 million in cash payments to be paid over the next two quarters, with payment beginning in the fourth quarter of 2004. Both transactions are effective immediately and not expected to materially impact financials in 2004.
ZOL is one of the providers of online personal technology-related content and shopping services in Northern China. Fengniao is one of China's digital photography properties, with reviews on over 1,000 digital cameras, as well as an image database, content, and forums related to the digital photography category. These transactions further expand CNET Networks' online presence with businesses that bring a combined daily reach of over 1 million users generating over 7 million page views each day.
CNET Networks plans to cross market ZOL and Fengniao with its businesses in China, with the goal of expanding the audiences and advertiser relationships of both its new and existing products.
