CNET Buys AuctionGate

CNET said Monday it's buying AuctionGate Interactive in a stock swap valued at $5.8 million.

California-based AuctionGate owns and operates AuctionGate.com, an auction site specializing in computer products.

"The acquisition enables CNET to facilitate person-to-person and business-to business auctions of used, refurbished, surplus and end-of-line computer products," CNET said in a statement.

Shares of CNET rose 5/8 to 116 5/8.

The deal expands the tech information specialist's role as an Internet-based link between computer buyers and sellers.

The company recently bought NetVentures, creator of e-commerce software ShopBuilder, to offer small and midsize computer manufacturers and resellers online stores at CNET.

CNET issued about 50,000 common shares for all of AuctionGate's stock. CNET said it plans to record the transaction as a pooling-of-interests.

"This acquisition further expands the product purchasing options for our users," said CNET Chairman and CEO Halsey Minor.

Written By Steve Gelsi, CBS MarketWatch