Speculation is circling Wall Street that Google might take a stake in CNET. Options buyers are snapping up the 10-strikes suggesting the stock could go to $10.

Sandell Asset Management raised its holdings to 3.47 million shares (2.3%) by buying 800,000 at $9.06 each. Separately, Jana Partners reported ownership of 16.6 million shares (10.9%). Sandell and Jana Partners are pushing for changes at CNET, which they say is underperforming.

A group led by JANA Partners and including Sandell Asset Management has notified CNET of its intention to propose two nominees for election to the board at the 2008 annual meeting, and to propose bylaw amendments that will allow JANA to gain control of a majority of the board by nominating an additional five directors at the meeting. JANA also filed a complaint in the Delaware Court that, if successful, would effectively invalidate CNET's bylaws that would prohibit JANA from submitting its proposals and nominations.

Coburn has a host of bearish ideas. He has made a bundle betting against newspaper stocks; he thinks they are "the buggy whips of the digital age," and remains short the New York Times (NYT) and others. He's also short a boatload of big, troubled tech companies -- Motorola (MOT), Palm (he and Integral disagree completely), eBay (EBAY), Alcatel-Lucent (ALU), Interpublic Group (IPG), CNET (CNET)...he's got 51.

Downgraded by Citigroup from Buy to Hold
Downgraded by First Albany from Buy to Neutral

price

7.2 13.06%

"The company currently has approximately $18MM in debt and a $60MM revolving credit facility, along with $61MM in cash...we believe CNET has scarcity value as one of the few publicly traded pure-play online content verticals, and the company???s advertising driven revenue model provides it with a highly stable business model. The company has recently resolved a series of legal, personnel, and accounting issues related to historical options expensing. We believe there may be room for operational improvement under different ownership and believe management would be amenable to a sale."

SPECULATION

Timely speculative idea

Internet growth stock