CNET, Inc. to Purchase WinFiles.com
SAN FRANCISCO, Feb. 24 /PRNewswire/ -- CNET, Inc. (Nasdaq: CNET) today announced that it has entered into an agreement with Jenesys, LLC to purchase WinFiles.com, a leading software downloading service on the Internet. Under the terms of the agreement, CNET will pay an initial installment of $5.75 million in cash at the closing of the transaction, and a second payment of $5.75 million 18 months after closing. The purchase further solidifies CNET's position as the largest source of free-to-download software on the Internet, and strengthens CNET's role as an online marketplace linking software buyers and sellers.
Halsey Minor, CNET Chairman and CEO said, "CNET has aggregated an enormous audience at its software downloading services, which executes nearly one million software downloads every day. By expanding this influential audience of software downloaders, which is also highly motivated to purchase software, CNET is well positioned to take advantage of the predicted growth in software sales and delivery via the Internet."
According to a 1998 CNET audience survey, 80 percent of CNET Download.com users say they are likely buy computer software online. In addition, IDC estimates that worldwide revenue from Electronic Software Distribution (ESD), defined by IDC as software that is both purchased and transmitted online, will reach $5.9 billion by 2001.* CNET currently enables users at its network to download demo software for evaluation, as well as compare products and prices on for-purchase software from an extensive list of partner merchants.
CNET's software downloading services, which include the popular sites CNET Download.com and CNET Shareware.com, are the largest software downloading sites** on the Internet in terms of reach, according to Media Metrix.*** With the purchase of WinFiles.com, CNET will have a combined unduplicated reach of 7.1 percent, or four million unique users per month, according to Media Metrix January 1999 data.
"Software downloading is one of the most popular services we offer at CNET," said Nish Bhutani, Vice President and General Manager, Products Group at CNET. "We've grown our large and loyal audience of users by offering superior selection, search capabilities and editorial expertise. The addition of WinFiles.com will help us continue to grow this key feature of our network."
Steve Jenkins, President and CEO of Jenesys, LLC said, "The combination of CNET and WinFiles.com will enhance the software downloading experience for both companies' users, and help software publishers of all sizes get wider distribution for their products."
About WinFiles.com
WinFiles.com is the Internet's premier destination for users of Windows 95/98, Windows NT, and Windows CE. Founded by Steve Jenkins in 1995, the WinFiles.com Web site is consistently ranked as one of the Internet's most popular locations for Windows shareware, freeware, and demo software, with over 17,000 software titles available for free download.
About CNET
CNET: The Computer Network CNET, Inc. is at the leading edge of media companies, producing a branded Internet network and television programming for both targeted and general audiences. Online and on television, CNET is the leading authority on computers, the Internet and digital technologies. CNET's network of sites serves millions of users each day. CNET television programming airs on USA Network, the Sci-Fi Channel and in national syndication, as well in 40 foreign countries. CNET effectively owns 40 percent of Snap, a search and navigation service for all Internet users, co-owned by NBC. CNET also owns approximately nine percent of Vignette Corporation, a manufacturer of premier Web publishing software, and approximately 16 percent of BuyDirect.com, an online software store that was recently purchased by Beyond.com.
This press release contains forward looking statements that are subject to significant risks and uncertainties. Although the Company believes that the expectations reflected in its forward looking statements are reasonable, it can give no assurance that such expectations or any of its forward looking statements will prove to be correct. Important cautionary statements and risk factors that could cause actual results to differ materially from those reflected in the Company's forward looking statements are disclosed under the caption "Additional Factors that May Affect Future Results" in the Company's latest quarterly report on Form 10-Q and under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations -- Outlook and Uncertainties" in the Company's latest annual report on Form 10-K, copies of which may be obtained from the Company.
* IDC Report#16705, July 1998
** CNET defined category includes the following high reaching software
downloading sites: Hotfiles.com, Windows95.com, WinFiles.com,
Tucows.com, Softseek.com, Filemine.com, Filez.com, Jumbo.com,
Davecentral.com, from Media Metrix WWW Audience Ratings Report,
January 1999
*** Media Metrix WWW Audience Ratings Report, January 1999, Web Calculator
SOURCE CNET, Inc.
CO: CNET, Inc.; Jenesys, LLC; WinFiles.com
ST: California
IN: MLM CPR
SU: TNM
02/24/99 09:26 EST prnewswire.com
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