According to Associated Press, CBS Corporation (CBS), one of the largest media conglomerate, recently announced that it has agreed to acquire Clicker.com, the provider of online guide for TV shows. However, the financial terms of the deal were not disclosed.
The buyout also marks the departure of Neil Ashe, president of CBS Interactive since the company gained CNET Networks Inc. Jim Lanzone, CEO of Clicker Media Inc., has been named as his successor.
The deal will bring Clicker’s expertise in web exploration, inundated ads and individualization for CBS Interactive properties and will boost the performance of its business segments. Further, it will also position CBS Corporation to emerge as the largest provider of cable TV guide as in this era of technological inventiveness it is likely that people will have Internet linked small screens in their homes.
Los Angeles-based Clicker.com is a well-known application on Google TV online video platform and generates around 2.5 million clients per month with an online directory of more than 1 million TV shows.
CBS Corporation posted strong fourth-quarter 2010 results helped by continued effective operating and cost-containment efforts. The company made a positive comeback in each quarter in 2010 outshining its performances in the corresponding prior-year quarters. It also pointed that the advertising marketplace has remained strong both locally and nationally.
CBS Corporation is witnessing improving trends in the advertising marketplace due to renewed strength in the auto and financial services categories, rise in traffic at CBS Interactive sites and subscriber growth across Cable Networks. Management remains confident about the growth momentum continuing in fiscal 2011.
However, due to its exposure to publishing, radio and television broadcasting, and outdoor billboard businesses, CBS Corporation remains highly vulnerable to the advertising market. To mitigate this, the company is striving to add diverse revenue streams to hedge against economic cycles.
Further, the media industry remains highly competitive, and CBS Corporation faces intense competition from other broadcast radio and television stations; cable television networks; motion picture studios; and from outdoor advertisers in the market it operates. One of the company’s competitors is News Corp (NWS). Strong competition may weigh upon CBS Corporation’s future results.
Currently, we have a long-term ‘Neutral’ rating on CBS Corporation, backed by a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating.
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