CNET/ZD: CNet Gets Government Okay for Ziff-Davis Acquisition - TheStreet

CNet Networks

(CNET) - Get Report

doled out two helpings of good news to investors today.

First the company, which produces Internet network, radio and television programming, announced it had received antitrust approval for its proposed acquisition of

Ziff-Davis

(ZD)

and its

ZDNet

(ZDZ)

unit.

The previously reported 50-million share swap deal is worth about $1.6 billion. The combined venture will have 16.6 million monthly users, or 22% of all online consumers in the U.S. As result of the acquisition, Ziff-Davis and ZDNet shareholders will own about 35% of the new, combined company.

On top of that, CNet said it expects to report increased revenue of about $580 million in 2001 and expects to report margins of 25% for its earnings before interest, taxation, depreciation and amortization margins.

First Call/Thomson Financial's

15-analyst earnings estimate is 54 cents a share for CNet 2001 results.