The owners of Network 10 ViacomCBS are set to lose $1.78 Billion on the sale of online tech site CNet

The global media group has been sold for $685M to digital marketing company Red Ventures, it’s expected that the Australian operation will be wound down with the group concentrating on the US and European markets.

The Australian operation that in the past use to cover local tech events now employ Australian staff to write global stories as opposed to delivering local news stories.

The deal that is set be finalised by the last quarter of 2020 could see the business pull out of selling SKU content to brands.

Currently CNet has relationships with both Sony and Hewlett Packard to deliver favourable content on CNet as well as content into the SKU of a brand in online retail stores.

Red Ventures already owns and operates more than 100 digital sites including Bankrate, the Points Guy and Healthline.

CBS acquired CNet for $2.47 Billion in 2008 resulting in the entertainment and content giant losing $148 a million for each year they owned the struggling online tech site.

Since the recombination of Viacom and CBS, the new ViacomCBS, which owns MTV, Paramount Studios, Comedy Central and CBS, has been selling off non-core assets to reduce debt and free up capital for acquisitions in the streaming space.

CNET executive vice president and general manager Mark Larkin touted synergies between his company and Red Ventures, adding: “Red Ventures shares our vision and is committed to realizing the full potential of our portfolio of world-class brands.”

“Red Ventures is eager to invest in CNET Media Group’s growth with more personalized consumer experiences that will reinvigorate CNET Media Group’s brands and unlock unprecedented opportunity for all,” said Red Ventures CEO and co-founder Ric Elias.