CBS to Acquire Internet Company CNET

Updated from 8:10 a.m. EDT

CBS (CBS Quote) reached an arrangement to acquire Internet company CNET Networks (CNET Quote) in a $1.8 billion deal.

Media giant CBS said it will pay $11.50 for each share of CNET. The acquisition, CBS said, will make it one of the top 10 Internet companies in the U.S., with a combined 54 million unique users a month and approximately 200 million users worldwide.

Based in San Francisco, CNET Networks owns a number of entertainment, news and information sites, including CNET, ZDNet, GameSpot.com, TV.com, mp3.com, Search.com, BNET, MySimon and TechRepublic. The company, which had 2007 revenue of $406 million, also has a large international presence, particularly in China.

Shares of CNET were jumping $3.47 to $11.34 in recent trading Thursday. The stock closed Wednesday at $7.95, and it has traded in a range of $6.47 to $9.88 in the past year. CBS, based in New York, was off 97 cents to $23.85.