Cnet Shares Up 12% Amid Affiliate’s IPO Plans

Shares of Cnet Inc., which runs news Web sites and produces TV shows about technology, rose 12% as a public offering for an affiliate company neared and takeover speculation circulated.

The San Francisco-based company’s shares rose $12.88 to close at $117.88 on Nasdaq. Earlier, shares climbed to $126.25, an all-time high.

CBS.MarketWatch.com reported Cnet shares surged because the company may benefit from the upcoming stock offering by Vignette Corp., an Austin, Texas-based maker of software for managing Web-site content. It also reported Cnet was the subject of buyout speculation, though no specific suitors were mentioned.

“There are so many rumors floating around that it wouldn’t surprise me,” said Daniel King, a LaSalle Street Securities analyst who has a “buy” rating for Cnet.

Cnet officials didn’t immediately return phone calls seeking comment.

Cnet owns about 10% of Vignette, and its shares may be rising in anticipation of Vignette’s stock offering, King said.

The price gain may also result from expectations about the company’s earnings. Last month, Cnet said it referred $80 million of business to merchants through its Web sites and TV shows during the fourth quarter. Cnet reports fourth-quarter earnings Feb. 10.

“A lot of these stocks will trade up a bit on a good earnings announcement,” King said.

Speculation about Web site operators accelerated in recent weeks with America Online Inc.’s $7.65-billion proposed purchase of Netscape Communications Corp. and At Home Corp.’s $7.82-billion acquisition of Excite Inc. Yahoo Inc. last week said it plans to buy personal Web-site provider GeoCities for $3.57 billion.

“This whole industry space is under intense pressure and is consolidating,” said Bill Whyman, an Internet stock strategist at Legg Mason’s Precursor Group. There is not enough advertising revenue to support all of the Web-portal companies, he said.

Among Cnet’s Internet operations is Snap!, an Internet directory co-owned by General Electric Co.’s NBC unit.

NBC owns a 5% stake in Cnet.