JANA to CNET: Focus on Shareholder Value

A group of activist investors is allowed to nominate seven directors to the board of CNET Networks – one of the original online media companies – a Delaware court ruled last week, reports the New York Times. Since then, the so-called "tempest in the teapot," as described by Delaware Court Chancellor William B. Chandler III, has spilled over into the media and with letters to shareholders.

The ruling by Chandler in Delaware’s Court of Chancery, opens the door for the investors, led by the hedge fund Jana Partners, to try to take over CNet’s board.

In response to the court ruling, CNET Networks issued the following statement:

“CNET Networks and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of CNET Networks in connection with the upcoming annual meeting of stockholders. Information regarding the special interests of these directors and executive officers in connection with the matters to be voted on at the annual meeting will be included in the proxy statement filed by CNET Networks in connection with the annual meeting.

"In addition, CNET Networks files annual, quarterly and special reports, proxy and information statements, and other information with the Securities and Exchange Commission (the “SEC”). These documents are available free of charge at the SEC’s web site at or from CNET Networks. Stockholders are urged to read the proxy statement carefully when it is available, as it will contain important information that stockholders should consider before making any voting or investment decision.”