New York—A consortium of prominent investment funds has amassed a 21% stake in online media company CNET Networks and is seeking to oust the company’s directors and take over a majority of its board, according to a report in Monday’s New York Times.
According to the Times
, the consortium sent a letter about its plan to CNET’s board two weeks ago, citing people briefed on the proposal, which the company has yet to disclose. The Times
, citing these sources, said the consortium is led by Jana Partners, an $8 billion fund founded by Barry Rosenstein that has mounted successful proxy fights against a number of big corporations. The consortium also includes Sandell Asset Management, venture capital firm Spark Capital and Paul Gardi, an entrepreneur who created the underlying search technology for Ask Jeeves, a unit of IAC/Interactive. CNET rejected the proposal, contending that the consortium would effectively be taking over the company without paying a premium, according the Times