Halsey Minor quits as CNet CEO
CNet's (cnet) current vice chairman and co-founder, Shelby Bonnie, succeeds him. Minor, 35-years old, will remain chairman of the company, working on strategic issues and vision for the company. Bonnie, also 35, will oversee overall company operations.
According to people close to the situation, Minor is giving up his post because he wants to focus more intently on making Internet investments with a group of close associates, including Eric Greenberg, the founder of Internet consulting firm Scient Corp. The pair plan to start a fund to help build Internet businesses, in a venture that is expected to be backed by Silicon Valley venture-capital group Benchmark Capital and others. Minor already has a range of personal investments in small Web companies, such as Listen.com, Salesforce.com, Tellme Networks and Half.com.
The move is yet another in a series of shifts in the executive ranks of prominent technology companies. Earlier this year, America Online Inc.'s (aol) chairman, Steve Case, said he planned to give up his CEO spot to Time Warner Inc.'s (twx) Gerald Levin after the merger of those companies. Microsoft Corp. (msft) Chairman Bill Gates gave up the CEO title to longtime No. 2 executive Steve Ballmer. More recently, Excite@Home Corp.'s (athm) chairman, Thomas Jermoluk, turned over that title to company President George Bell.
The pressures of running a big company also entered into Minor's decision, people familiar with his thinking said. CNet, founded in 1992, now has more than 1,000 employees in a variety of divisions, including online news, e-commerce, television and radio. Minor has already brought in experienced executives to run the burgeoning services, such as President Rich Marino, who arrived last year.
Currently, the company's main revenue source is advertising on its Web sites, but it has also been helped by a range of technology investments it has made.
In its most recent quarter, it earned $356 million, or $4.18 a diluted share, including a $612 million gain related to its interest in the Snap portal that was sold to NBC Internet Inc. Excluding that gain, CNet had a loss of $29.8 million. Revenue was $38.3 million.
CNet's stock has gained favor with Wall Street recently, because of its strong ad results and fast growth in its ability to point customers to retail partners. It has risen from below $50 in the beginning of February to $68.875 Thursday, up $4.25.
At that price, the company's valuation stands at about $5 billion. Minor's stake is valued at close to $700 million.
Bonnie has been deeply involved in CNet's growth. In addition to serving as vice chairman, he has served as chief operating officer, chief financial officer and is on its board. Before CNet, he was a managing director at Tiger Management, a New York-based investment firm, and, before that, in the mergers and acquisitions department of Morgan Stanley & Co. He received his master's of business administration from Harvard Business School and a bachelor's in science from the University of Virginia. Minor was also a Virginia graduate.