Investment Group Ups Stake, Challenges CNET Board

A group of investment funds has amassed a 21 percent stake in media technology company CNET Networks and is seeking to oust its directors, according to a story in the The New York Times.

The report said the consortium, led by $8 billion fund Jana Partners, had sent a letter to the CNET board two weeks ago. The group was seeking to take over a majority of the company's board, the report said, quoting people briefed on the proposal.

Sandell Asset Management, venture capital firm Spark Capital, and entrepreneur Paul Gardi were also part of the consortium, the NYT reported.

CNET, publisher of a family of technology, lifestyle, and entertainment Web sites, posted a third-quarter net loss of $16.6 million or 11 cents per share, compared with a loss of $2.3 million or 2 cents the year-earlier quarter.