CBS Corp, looking to expand its internet holdings, says it will purchase 35% of web directory operator Switchboard Inc from majority owner Banyan Systems Inc for $135m in promotional activity. CBS will provide advertising and branding for switchboard.com across all of its television, radio and recently- acquired billboard properties for a period of seven-to-ten years. The deal also calls for CBS to receive warrants for an additional 5% of the company as well as warrants to purchase up to 250,000 shares of Banyan’s stock. Previously, Banyan owned 90% of Switchboard, while America Online Inc owns the other 10%. Thus the relationship between CBS and AOL, often rumored to be possible merger partners, will be extended. CBS already provides news content to the internet services giant.
Switchboard offers an estimated 40 million users per month access to 117 million US telephone, address and email listings, as well as maps and other resources. It will now change its name to CBS Switchboard.com and will function as a single online connection to the entire family of CBS internet properties through co- branded interfaces. For CBS, the deal follows similar ones in April which saw it acquire a 35% stake in Hollywood.com and a 50% stake in storeRunner.com for a combined $200m in promotions. The media giant also owns a 33.3% stake in office.com, a 20% stake in SportsLine USA Inc and 38% in MarketWatch.com Inc. CBS has been publicly mulling a plan to spin off its internet holdings as a publicly-traded company in the near future and claims that its MarketWatch and SportsLine stakes alone are now worth roughly $500m.
