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CBS buys Switchboard stake
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June 2, 1999: 9:23 a.m. ET
Network swaps $135M stock for 35% of Internet portal to boost Web presence
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NEW YORK (CNNfn) - CBS Corp., parent of the U.S. broadcasting network, said Wednesday it is buying a 35 percent stake in Switchboard Inc. for $135 million in stock, a move intended to boost the broadcasting company's Web presence.
Under terms of the agreement, CBS (CBS) also will get an option to buy an additional 5 percent through warrants from Switchboard's parent, Banyan Systems Inc. (BNYN). CBS also will receive an option to buy 250,000 shares of Banyan stock.
In exchange, Switchboard will receive rights to use CBS's branding and logo for a seven- to 10-year term. It also will have access to CBS's radio and outdoor ad subsidiary, Infinity Broadcasting Corp. (INF). CBS representatives will join Switchboard's board of directors.
The agreement will allow CBS to expand its Web presence by offering more search capabilities and a more in-depth data base of information to its current roster of Internet sites and information.
CBS currently has investments in SportsLine USA Inc. (SPLN) and MarketWatch.com Inc. (MKTW). MarketWatch.com, CBS's business Web site, competes with CNNfn.com to provide financial news and market information to Internet users.
CBS shares rose 1 to 42-3/4 Tuesday. 
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