bloggingbuyouts

The Associated Press reports that CBS Corp. (NYSE: CBS) is buying CNet Networks Inc. (NASDAQ: CNET) for $1.75 billion. This $11.50 a share deal is a 45% premium over Wednesday's closing price

CNet's Web sites include News.com, TV.com, Mp3.com, MySimon and GameSpot. And CBS expects to use CNet to tap into the internet advertising market. This deal raises the question of whether any CBS competitors will decide to get into the game of buying internet content companies.

Here are three possible targets:

• TheStreet.com (NASDAQ: TSCM) - This provider of business, investment and ratings content has $65 million in sales and a market cap of $236 million.
• TechTarget (NASDAQ: TTGT) - This provider of online content for buyers and sellers of corporate information technology (IT) products has $95 million in sales and a $531 million market cap.
• WebMD Health Corp (NASDAQ: WBMD) - This provider health information services to consumers, physicians and other healthcare professionals, employers and health plans has $332 million in sales and it's market capitalization is $1.7 billion

I think traditional media companies buying Internet ones could become a trend. It would only take two more such deals to make it one.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

The merger of HLTH Corporation (NASDAQ: HLTH) and WebMD Health Corp. (NASDAQ: WBMD) could make the combined company a target for larger internet companies such as Google Inc. (NASDAQ: GOOG), industry observers said Thursday.

HLTH Corp., of Elmwood Park, N.J., announced Thursday that it would merge into its 84%-owned subsidiary, WebMD, in a $2.3 billion deal. Under terms of the transaction, each outstanding share of HLTH common stock will be converted into 0.1979 shares of WebMD common stock and $6.89 in cash. The deal, which values each HLTH share at $12.63, a 26% premium to Wednesday's closing price on the Nasdaq Stock Market, will eliminate both the controlling class of WebMD stock held by HLTH and WebMD's existing dual-class stock structure.

"It's still modest relative to what those actual properties could fetch but one thing that existing HLTH shareholders have to consider is things are cleared for a potential takeout," said Anthony Petrone, medical technology analyst at Maxim Group LLC in New York.

Continue reading at TechConfidential.com.

HLTH Corporation (NASDAQ: HLTH) is merging back its 84% owned subsidiary, WebMD Health Corp. (NASDAQ: WBMD). The company announced this morning after earnings that the two have entered into a definitive merger agreement where HLTH will merge into WebMD.

In the merger, each outstanding share of HLTH common stock will be converted into 0.1979 shares of WebMD common stock AND $6.89 in cash. This is subject to an adjustment, and you'll want to see that in the release.

The shares of WebMD Class A Common Stock currently outstanding will remain outstanding and will be unchanged in the merger. The merger will eliminate both the controlling class of WebMD stock held by HLTH and WebMD's existing dual-class stock structure.

Based on yesterday's closing prices, HLTH shareholders will receive a 26% premium at the close before any share price adjustments for their shares and direct ownership in WebMD.

There is a development outside of this merger, and that is a partial divestiture. HLTH said that it has received significant interest from potential strategic buyers for both ViPS and Porex, and it will be moving rapidly to obtain formal offers for these businesses from potential buyers. These units will be divested, although the merger is not dependent upon this. As far as adjustments, you will want to read that formal release because there are some interest bearing notes that could be issued to holders with an 11% annual rate. The company had also recently sold off a minority interest in Emdeon to General Atlantic and Hellman & Friedman.

This is not the first forray for these two. The companies used to be one, and that was before they had split up long ago. WebMD has been a public stock with its 16% float since the end of 2005. Its shares had more than doubled over that period, but shares have fallen more than 50% since October 2007. HLTH shares are down more than 20% over the same period.

These companies never needed to be broken up in the first place. This will hopefully end the confusion over which sites offer what content.

Jon Ogg is an editor and partner of 247WallSt.com.