JANA-Led Investor Group Seeks CNET (CENT) Board Takeover

CNET Networks (Nasdaq: CNET) is fractionally higher this morning, following news that an invetor group, led by hedge fund JANA Partners, nominate seven people for election to the company's Board of Directors.

JANA and its partners currently beneficially own approximately 8% of CNET's voting stock and JANA has an additional approximately 8% non-voting economic interest in CNET.

JANA has collaborated with Paul Gardi of Alex Interactive Media and venture capital firm Spark Capital. JANA also said hedge fund Sandell Asset Management, which owns a 5% non-voting interest, has agreed to support its effort.

JANA Managing Partner Barry Rosenstein said, "This effort is about taking an underperforming company and increasing shareholder value by building on its top-notch editorial talent and premier internet assets. Together with Paul Gardi and Spark Capital, we have assembled a group of nominees we believe has the technical skills and business experience to reverse CNET's ongoing underperformance and start delivering value for shareholders."

In response to the announcement, CNet said they have reviewed JANA Partners' proposal and determined that it is improper under the Company's by-laws.