Shares of CNet Inc. edged higher Tuesday morning after the company said it will spend $46.6 million in stock to acquire KillerApp Corp., an operator of an online shopping channel for computers and consumer electronics.
Under the terms of the agreement, the Internet content provider (CNET) will issue about 500,000 shares for all of KillerApp's stock, the company said.
CNet said the acquisition of privately held KillerApp - which is based in Fremont, Calif. and operates www.killerapp.com - "enables CNet to offer users access to an even greater selection of computer products and prices and introduces a new product category to CNet's shopping services - consumer electronics."
Shares of CNet rose 7/16 to 93 11/16 in late morning trading.
"With this acquisition, we have taken another step toward providing the quintessential online marketplace for the technology buyer," said CNet's chief executive Halsey Minor.
CNet said the company discovered from a survey that CNet users are "avid consumers" of technology products and intend to purchase about three new consumer electronics in the next year.
"It's a great match," said KillerApp's chief executive Benjamin Chiu. "In joining forces with CNet, our combined audiences will now have even better product and price information."
Written By Lisa J Ulmer, CBS MarketWatch