S&P: CNET Networks unchanged

Standard & Poor's said its ratings on CNET Networks Inc. (B/positive) are not currently affected by the appointment of a special committee by CNET's board of directors to conduct an internal investigation into past option grants, the timing of such grants and related accounting matters.

The appointment is in response to the Center for Financial Research and Analysis identifying CNET as having granted stock options on four occasions between 1998 and 2001 with exercise prices that matched or were close to a 40-day low for its stock price, the agency said.

S&P added that the current rating and outlook on CNET are based on an improving online advertising environment, the company generating positive discretionary cash flow and its having sufficient liquidity to withstand the higher business volatility associated with the internet space.

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