SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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SCHEDULE 13D*
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
RULE 13d-2(a)
Under the Securities Exchange Act of 1934
(Amendment No. 2)
CNET Networks, Inc.
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(Name of Issuer)
Common Stock, par value $0.0001 per share
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(Title of Class of Securities)
12613R104
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(CUSIP Number)
Marc Weingarten, Esq.
Schulte Roth & Zabel LLP
919 Third Avenue
New York, New York 10022
(212) 756-2000
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
January 11, 2008
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(Date of Event which Requires
Filing of This Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition that is the subject of this Schedule 13D, and is filing
this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the
following box. [ ]
NOTE: Schedules filed in paper format shall include a signed original and
five copies of the schedule, including all exhibits. See Rule 13d-7 for other
parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 10 Pages)
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The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes)
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CUSIP NO. 12613R104 SCHEDULE 13D PAGE 2 OF 10 PAGES
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
JANA PARTNERS LLC
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
AF
-------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
15,481,159
----------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,114,333
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 15,481,159
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,114,333
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
16,595,492
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES*
[X]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
10.9%
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14 TYPE OF REPORTING PERSON*
IA
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* SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP NO. 12613R104 SCHEDULE 13D PAGE 3 OF 10 PAGES
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
SPARK MANAGEMENT PARTNERS, L.L.C.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
AF
-------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
-------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
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7 SOLE VOTING POWER
2,583,979
----------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 14,866
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 2,583,979
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
14,866
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
2,598,845
-------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES*
[X]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.7%
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14 TYPE OF REPORTING PERSON*
OO
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* SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP NO. 12613R104 SCHEDULE 13D PAGE 4 OF 10 PAGES
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-------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
VELOCITY INTERACTIVE MANAGEMENT, LLC
-------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
AF
-------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
-------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
-------------------------------------------------------------------------------
7 SOLE VOTING POWER
- 0 -
----------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,000,000
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH - 0 -
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,000,000
-------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
1,000,000
-------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES*
[X]
-------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.7%
-------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
-------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP NO. 12613R104 SCHEDULE 13D PAGE 5 OF 10 PAGES
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-------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
ALEX INTERACTIVE MEDIA, LLC
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
-------------------------------------------------------------------------------
3 SEC USE ONLY
-------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
-------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
-------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
-------------------------------------------------------------------------------
7 SOLE VOTING POWER
-0-
----------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 129,199
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH -0-
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
129,199
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
129,199
-------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES*
[X]
-------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
less than 0.1%
-------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
-------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP NO. 12613R104 SCHEDULE 13D PAGE 6 OF 10 PAGES
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The Schedule 13D filed on January 7, 2008, as amended by Amendment No.1,
filed on January 9, 2008 (the "Schedule 13D") by JANA Partners LLC, a Delaware
limited liability company, Spark Management Partners, L.L.C., a Delaware limited
liability company, Velocity Interactive Management, LLC, a Delaware limited
liability company, and Alex Interactive Media, LLC, a Delaware limited liability
company (together, the "Reporting Persons") relating to the shares ("Shares") of
common stock, par value $0.0001 per share, of CNET Networks, Inc. (the
"Issuer"), is hereby amended as set forth below by this Amendment No.2 to the
Schedule 13D.
Item 3. Source and Amount of Funds or Other Consideration.
Item 3 of the Schedule 13D is hereby amended and restated as follows:
The 16,595,492 Shares reported herein as being beneficially owned by JANA
were acquired at an aggregate purchase price of approximately $164,429,943.00.
The Shares beneficially owned by JANA were acquired with investment funds in
accounts under management. The 2,598,845 Shares reported herein as being
beneficially owned by Spark were acquired by CT-100 from JANA on January 15,
2008 for an aggregate purchase price of $20,115,060.30, which amount includes
$115,060.30 for the 14,866 Shares acquired by CT-100 on behalf of AIM. The
Shares beneficially owned by Spark were acquired with working capital of CT-100.
The Shares which are reported herein as being beneficially owned by AIM are so
reported based on its contractual obligation to purchase such Shares from JANA,
as described in Item 6 of the Schedule 13D. Except for the 14,866 Shares
acquired by CT-100 on behalf of AIM as described above, such purchase has not
yet been consummated. The amount of funds used by AIM to purchase such Shares
will be an aggregate of $1 million, and the source of such funds has been and
will be the working capital of AIM. The Shares which are reported herein as
being beneficially owned by Velocity are so reported based on its option to
purchase such Shares from JANA, as described in Item 6 of the Schedule 13D, but
such option has not yet been exercised. The amount of funds to be used by
Velocity (should Velocity exercise its option) to purchase such Shares will be
up to $10 million, and the source of such funds will be the working capital of
Velocity or an affiliate.
Item 4. Purpose of Transaction.
Item 4 of the Schedule 13D is hereby supplemented as follows:
On January 14, 2008, JANA distributed a press release (the "JANA January 14
Press Release") criticizing the Issuer's adoption of a poison pill. A copy of
the JANA January 14 Press Release is filed as Exhibit 13 to the Schedule 13D and
is incorporated herein by reference.
Item 5. Interest in Securities of the Company.
Paragraph (a), the first and second sentences of paragraph (b), and
paragraph(c) of Item 5 of the Schedule 13D are hereby amended as follows:
(a) The aggregate percentage of Shares reported to be beneficially owned by
the Reporting Persons is based upon 151,973,545 Shares outstanding, which is the
total number of Shares outstanding as of October 31, 2007 as reported in the
Issuer's Quarterly Report on Form 10-Q filed on November 5, 2007 for the period
ended September 30, 2007.
As of the close of business on January 15, 2008; (i) JANA may be deemed to
beneficially own 16,595,492 Shares, constituting approximately 10.9% of the
Shares outstanding, (ii) Spark may be deemed to beneficially own 2,598,845
Shares, constituting approximately 1.7% of the Shares outstanding, (iii)
Velocity may be deemed to beneficially own 1,000,000 Shares, constituting
approximately 0.7% of the Shares outstanding, and (iv) AIM may be deemed to
beneficially own 129,199 Shares, constituting less than 0.1% of the Shares
outstanding. AIM beneficially owns its Shares by virtue of the Amended and
Restated Agreement described in Item 6 of the Schedule 13D. Velocity
beneficially owns its Shares by virtue of the Option Agreement described in Item
6 of the Schedule 13D.
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CUSIP NO. 12613R104 SCHEDULE 13D PAGE 7 OF 10 PAGES
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By virtue of (i) the Amended and Restated Agreement, (ii) the Option
Agreement, and (iii) the Sandell Group Agreement, the Reporting Persons and
Sandell may be deemed to have formed a "group" within the meaning of Section
13(d)(3) of the Securities Act of 1934 and may be deemed to beneficially own
22,664,337 Shares, constituting approximately 14.9% of the Shares outstanding.
However, each of the Reporting Persons expressly disclaims beneficial ownership
of the Shares beneficially owned by the other Reporting Persons and Sandell.
Sandell has filed a separate Schedule 13D with respect to its interest.
(b) JANA has sole voting and dispositive powers over 15,481,159 Shares,
which powers are exercised by the JANA Principals, and (i) by virtue of the
Option Agreement, shared voting and dispositive power over 1,000,000 Shares,
which power is shared with Velocity and (ii) by virtue of the Amended and
Restated Agreement, shared voting and dispositive power over 114,333 Shares
which power is shared with AIM. Spark has sole voting and dispositive powers
over 2,583,979 Shares, which powers are exercised by the Spark Principals, and
shared voting and dispostive powers over 14,866 Shares, which is shared with
AIM.
(c) Information concerning transactions in the Shares effected by the
Reporting Persons since the filing of Amendment No. 1 to the Schedule 13D is set
forth in Appendix A hereto and is incorporated herein by reference.
Item 6. Contracts, Arrangements Understandings or Relationships with
Respect to Securities of the Company.
The first, second and third sentences of the fifth paragraph of Item 6 are
hereby amended as follows:
JANA currently has contractual agreements with one credit counterparty,
Jefferies & Company, Inc., with regard to cash-settled equity swaps (the "JANA
Swaps") that reference Shares. The JANA Swaps constitute economic exposure to
approximately 7,134,800 Shares, or 4.7% of the Shares outstanding. The JANA
Swaps have reference prices ranging from $7.58 to $8.07 and expiration dates of
July 28, 2008.
Item 7. Material to be Filed as Exhibits.
Exhibit 13 JANA January 14 Press Release
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CUSIP NO. 12613R104 SCHEDULE 13D PAGE 8 OF 10 PAGES
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SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: January 15, 2008
JANA PARTNERS LLC
BY: /s/BARRY ROSENSTEIN
-----------------------------
Name: Barry Rosenstein
Title: Managing Partner
BY: /s/GARY CLAAR
-----------------------------
Name: Gary Claar
Title: General Partner
SPARK MANAGEMENT PARTNERS, L.L.C.
BY: /s/SANTO POLITI
-----------------------------
Name: Santo Politi
Title: Managing Member
VELOCITY INTERACTIVE MANAGEMENT,
LLC
BY: /s/RODI GUIDERO
-----------------------------
Name: Rodi Guidero
Title: Authorized Signatory
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CUSIP NO. 12613R104 SCHEDULE 13D PAGE 9 OF 10 PAGES
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ALEX INTERACTIVE MEDIA, LLC
BY: /s/PAUL GARDI
-----------------------------
Name: Paul Gardi
Title: Managing Member
APPENDIX A
TRANSACTIONS IN THE SHARES EFFECTED BY THE
REPORTING PERSONS SINCE THE FILING OF AMENDMENT NO. 1 TO THE SCHEDULE 13D
(UNLESS OTHERWISE STATED, ALL TRANSACTIONS WERE EFFECTED IN THE OPEN MARKET)
JANA
Date of Trade Shares Purchased (Sold) Price per Share
------------- ----------------------- ---------------
1/10/2008 255,600 $9.07
453,308 8.49
8,562 8.79
100 8.80
200 8.81
1/11/2008 1,000,000 8.74
613,962 8.85
30,102 9.00
1/14/2008 673,148 8.98
1/15/2008 (2,598,845) 7.74*
Spark**
Date of Trade Shares Purchased (Sold) Price per Share
------------- ----------------------- ---------------
1/15/2008 2,583,979 $7.74
AIM***
Date of Trade Shares Purchased (Sold) Price per Share
------------- ----------------------- ---------------
1/15/2008 14,866 $7.74
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* Sold in a private transaction to CT-100 pursuant to the Amended and
Restated Agreement. Amount includes 14,866 Shares acquired by CT-100 on behalf
of AIM.
** Acquired in a private transaction from JANA pursuant to the Amended and
Restated Agreement.
*** Acquired in a private transaction from JANA pursuant to the Amended and
Restated Agreement.