Ziff Davis Acquires CNET: A New Era for Tech Journalism

CNET Changes Ownership: A New Chapter for the Tech Media Pioneer

CNET, recognized as one of the early trailblazers in online technology journalism, is set to undergo a significant transition in ownership. Ziff Davis, a prominent digital media conglomerate that boasts other well-known technology brands such as Mashable, PC Mag, and Lifehacker, has announced its acquisition of CNET from Red Ventures. This exciting development was confirmed by Vivek Shah, the chief executive of Ziff Davis, on Tuesday.

According to sources familiar with the transaction, Ziff Davis has invested over $100 million to acquire CNET, although Red Ventures has opted not to comment on the deal. Mr. Shah elaborated that this acquisition aligns with Ziff Davis’s strategy to expand its portfolio of digital media businesses, especially given the company’s robust cash reserves of approximately $800 million. He anticipates further acquisitions within the industry as tech titans like Google and Meta increasingly dominate digital advertising revenues, and as the rise of artificial intelligence introduces additional challenges to the digital media landscape.

“There’s enough uncertainty in the market that could prompt some to reconsider their future,” Mr. Shah noted. “However, I maintain a clear and optimistic perspective on the future of content creation.”

Mr. Shah has a noteworthy history with Ziff Davis, having orchestrated a buyout of the company in 2010 when it was still a century-old magazine publisher chronicling the early boom in technology. Ziff Davis was subsequently acquired by J2 Global, which Mr. Shah later divided into two entities. One retained the Ziff Davis name and included well-known media brands like Mashable, while the other focused on a fax service provider called eFax.

CNET, which recorded an impressive 38 million visitors in June per SimilarWeb statistics, has experienced several ownership changes since its inception three decades ago. CBS acquired the platform in 2008 at a staggering valuation of $1.8 billion, while Red Ventures purchased it in 2020 for approximately $500 million.

Despite its storied history, CNET has faced challenges in recent times. Earlier in 2023, an investigation by Futurism, a news outlet, revealed that CNET had been publishing articles generated with assistance from generative artificial intelligence, prompting the company to revise its editorial guidelines. This led to the unionization of CNET’s writers and content creators, who cited concerns over the implications of AI on their work.

Although Ziff Davis’s stock has seen a decline over the past year, reflecting broader struggles within the publishing industry that have impacted digital advertising, Mr. Shah remains confident that acquisitions like CNET will bolster profitability. He emphasized that CNET’s established reputation and extensive audience will enhance Ziff Davis’s leverage with advertisers aiming to connect with tech-savvy consumers.

“The landscape of technology and telecom products and services—whether for individuals, households, or businesses—continues to become increasingly complex,” Mr. Shah stated. “With a multitude of choices available, there is a growing need for expert advice. Thus, I believe there is a genuine editorial demand for the content that CNET provides.”