As previously announced on July 19, 2000, CNET Networks will acquire ZDNet to create the global leader in providing technology information and related services to businesses and individuals across multiple platforms. To effect the acquisition, each share of ZD common stock will be converted into 0.3397 shares of CNET Networks common stock, and each share of ZDNet common stock will be converted into 0.5932 shares of CNET Networks common stock. CNET expects to issue approximately 50 million shares of common stock in the transaction. As a result, holders of ZD and ZDNet stock will hold approximately 35 percent of the equity of the combined company.
Ziff-Davis (ZDZ: news, msgs) and CNET (CNET: news, msgs) stocks fell after Ziff Davis shareholders approved the company's acquisition by CNET Networks. CNET shareholders will hold their meeting Oct. 17 to vote on the deal. Each share of ZD common stock will be converted into 0.3397 shares of CNET Networks common stock, and each share of ZDNet common stock will be converted into 0.5932 shares of CNET Networks common stock. Shares of ZD lost $1, or 7.8 percent, to $11.87. CNET fell $2.25, or 10.2 percent, to $10.88