uhhmm...this could be bad news for COOL. The following article was reproduced without permission from ZDnet:
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CNet, AOL in shares-for-space swap?
By Matthew Broersma
02/08/99 08:57:00 PM
Source says CNet will supplant CMPNet -- and could give AOL ownership to pay for privilege.
CNet Inc. has reached an arrangement with America Online Inc. that will give it prominent placement on AOL, according to a source familiar with the matter.
What's more, the deal may add AOL to the list of the CNet's financial backers, if, as observers believe, AOL (NYSE:AOL) plans to accept a stake in CNet (Nasdaq:CNET) as payment for the placement deal.
The same source said CNet would replace CMPNet, an arm of CMP Media Inc. (TRADES:CMPX) of Manhasset, N.Y., as the main technology information tenant on AOL's computing channel. CNet could also take the place of online computer equipment retailer Cyberian Outpost Inc. (Nasdaq:COOL) in the shopping channel.
Cyberian Outpost's contract with AOL expired in December, according to AOL.
An AOL spokesperson said it is the company's policy not to comment on rumors or speculation. CNet did not respond to requests for comment in time for this article. CNet is a direct competitor of ZDNet, which operates ZDNN.
The deal will be a marketing boost for CNet. Observers say a placement on AOL, which has more than 15 million users, could legitimize CNet's recent moves into e-commerce.
"It's definitely a plus for CNet," said Matt Finick, research associate with Thomas Weisel Partners, a San Francisco securities firm. "Over the last six to nine months, they've ramped their e-commerce business, in selling leads for customers buying hardware. This is a big boost for that e-commerce model
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