Prospectus Supplement

Filed Pursuant to Rule 424(b)(3)

Registration No. 333-115569

 

Prospectus Supplement No. 3 dated August 20, 2004

(To Prospectus dated June 21, 2004)

 

$125,000,000

CNET Networks, Inc.

0.75% Convertible Senior Notes Due 2024

Shares of Common Stock Issuable Upon Conversion of the Notes

 

This prospectus supplement supplements the prospectus dated June 21, 2004 and the prospectus supplements dated July 20, 2004 and August 5, 2004 (collectively, the “prospectus”) of CNET Networks, Inc., relating to the resale by holders of our 0.75% Convertible Senior Notes Due 2024 and the shares of our common stock issuable upon conversion of the notes.

 

This prospectus supplement should be read in conjunction with the prospectus. This prospectus supplement is not complete without, and may not be delivered or utilized except in connection with, the prospectus.

 

The following table sets forth information with respect to the selling securityholders and the principal amounts of notes and shares of common stock issuable upon conversion of the notes beneficially owned by each selling securityholder that may be offered pursuant to this supplement and the accompanying prospectus. The information is based solely on information provided by or on behalf of the selling securityholders. Except as set forth in the notes to the table below, none of the selling securityholders nor any of their affiliates, officers, directors or principal equity holders has held any position or office or has had any material relationship with us within the past three years.

 

The selling securityholders may, pursuant to this prospectus, offer all, some or none of the notes or the common stock issuable upon conversion of the notes. As a result, we cannot estimate the amount of the notes or the common stock that will be held by the selling securityholders upon termination of any of these sales. In addition, the selling securityholders identified below may have sold, transferred or otherwise disposed of all or a portion of their notes since the date on which they provided the information regarding their notes in transactions exempt from the registration requirements of the Securities Act.

 

The percentage of notes outstanding beneficially owned by each selling securityholder is based on $125,000,000 aggregate principal amount of notes outstanding. The number of shares of common stock owned prior to the offering includes shares of common stock issuable upon conversion of the notes. The percentage of common stock outstanding beneficially owned by each selling securityholder is based on 143,253,755 shares of common stock outstanding on August 19, 2004. The number of shares of


common stock issuable upon conversion of the notes offered for resale hereby is based on a conversion rate of 66.6667 shares of common stock per $1,000 principal amount of the notes and a cash payment in lieu of any fractional share. The conversion rate, and therefore the number of shares of common stock issuable upon conversion of the notes, is subject to adjustment in certain circumstances. Accordingly, the number of shares of common stock issuable upon conversion of the notes may increase or decrease.

 

The prospectus is hereby supplemented as follows to restate, in its entirety, the table of selling securityholders under the caption “Selling Securityholders” contained on pages 41-42 of the prospectus:

 

Name


   Principal Amount of
Notes Beneficially
Owned and Offered
for Resale Hereby


   Percentage of
Notes
Outstanding


    Shares of
Common Stock
Owned Prior to
the Offering (1)


   Percentage of
Common Stock
Outstanding (2)


    Shares Issuable Upon
Conversion of the Notes
and Available for Resale
(3)


The Animi Master Fund, Ltd.

   $ 5,000,000    4.00 %   333,333    *     333,333

Arbitek Master Fund L.P.

   $ 5,000,000    4.00 %   333,333    *     333,333

BNP Paribas Equity Strategies, SNC

   $ 1,161,000    *     100,368    *     77,400

BP Amoco PLC Master Trust

   $ 772,000    *     51,466    *     51,466

Citigroup Global Markets Inc. (4)

   $ 13,750,000    11.00 %   916,667    *     916,667

Clinton Multistrategy Master Fund, Ltd.

   $ 65,100    *     4,340    *     4,340

Clinton Riverside Convertible Portfolio Limited

   $ 130,400    *     8,693    *     8,693

Context Convertible Arbitrage Fund, L.P.

   $ 350,000    *     23,333    *     23,333

Context Convertible Arbitrage Offshore, Ltd.

   $ 1,050,000    *     70,000    *     70,000

Convertible Securities Fund

   $ 25,000    *     1,666    *     1,666

CooperNeff Convertible Strategies (Cayman) Master Fund, LP

   $ 1,122,000    *     74,800    *     74,800

The Drake Offshore Master Fund, Ltd.

   $ 18,000,000    14.40 %   1,200,000    *     1,200,000

Deutsche Bank Securities Inc.

   $ 500,000    *     33,333    *     33,333

Excelsior Master Fund L.P.

   $ 500,000    *     33,333    *     33,333

FrontPoint Convertible Arbitrage Fund

   $ 750,000    *     50,000    *     50,000

Geode U.S. Convertible Arbitrage Fund, a series of Geode Investors LLC

   $ 3,000,000    2.40 %   200,000    *     200,000

Grace Convertible Arbitrage Fund, Ltd.

   $ 6,000,000    4.80 %   400,000    *     400,000

Highbridge International LLC

   $ 5,000,000    4.00 %   333,333    *     333,333

Hotel Union & Hotel Industry of Hawaii Pension Plan

   $ 204,000    *     13,600    *     13,600

Institutional Benchmarks Master Fund Ltd. c/o SSI Investment Management

   $ 687,000    *     45,800    *     45,800

KBC Financial Products USA, Inc.

   $ 5,250,000    4.20 %   350,000    *     350,000

Laurel Ridge Capital, L.P.

   $ 10,500,000    8.40 %   700,000    *     700,000

LDG Limited

   $ 85,000    *     5,666    *     5,666

Lexington Vantage Fund c/o TQA Investors, LLC

   $ 7,000    *     466    *     466

Lionhart Aurora Fund Ltd.

   $ 300,000    *     20,000    *     20,000

Lionhart Global Appreciation Fund Ltd.

   $ 1,550,000    1.24 %   103,333    *     103,333

Lionhart Titan Fund Ltd.

   $ 150,000    *     10,000    *     10,000

Lyxor/Context Fund Ltd.

   $ 200,000    *     13,333    *     13,333

Lyxor/Convertible Arbitrage Fund Limited

   $ 216,000    *     14,400    *     14,400

Mohican VCA Master Fund

   $ 825,000    *     55,000    *     55,000

MSS Convertible Arbitrage I c/o TQA Investors, LLC

   $ 4,000    *     266    *     266

National Bank of Canada

   $ 125,000    *     8,333    *     8,333

Nations Convertible Securities Fund

   $ 5,975,000    4.78 %   398,333    *     398,333

Radcliffe SPC, Ltd for and on behalf of the Class A Convertible Crossover Segregated Portfolio

   $ 11,500,000    9.20 %   766,667    *     766,667

Ritchie Convertible Arbitrage Trading

   $ 675,000    *     45,000    *     45,000

Royal Bank of Canada (Norshield)

   $ 175,000    *     11,666    *     11,666

Silverback Master, LTD

   $ 1,000,000    *     66,666    *     66,666

Singlehedge US Convertible Arbitrage Fund

   $ 264,000    *     17,600    *     17,600

Sphinx Convertible Arb Fund SPC c/o SSI Investment Management

   $ 492,000    *     32,800    *     32,800

Sphinx Fund c/o TQA Investors, LLC

   $ 93,000    *     6,200    *     6,200

SSI Blended Market Neutral L.P.

   $ 410,000    *     27,333    *     27,333

SSI Hedged Covertible Market Neutral L.P.

   $ 414,000    *     27,600    *     27,600

Sturgeon Limited

   $ 237,000    *     15,800    *     15,800

TQA Master Fund Ltd.

   $ 709,000    *     47,266    *     47,266

TQA Master Plus Fund Ltd.

   $ 1,246,000    1.00 %   83,066    *     83,066

Univest Convertible Arbitrage Fund II Ltd. (Norshield)

   $ 100,000    *     6,666    *     6,666

Viacom Inc. Pension Plan Master Trust

   $ 21,000    *     1,400    *     1,400

XAVEX Convertible Arbitrage 7 Fund c/o TQA Investors, LLC

   $ 90,000    *     6,000    *     6,000

Zurich Institutional Benchmarks Master Fund Ltd. c/o TQA Investors, LLC

   $ 135,000    *     9,000    *     9,000

Any other holder of notes or future transferee, pledgee, donee or successor of any holder (5)

   $ 19,185,500    15.35 %   1,279,033    *     1,279,033
    

  

 
  

 

Total

   $ 125,000,000    100.00 %   8,356,301    5.51 %   8,333,333

* Less than one percent of the notes or common stock outstanding, as applicable.
(1) Includes shares of common stock issuable upon conversion of the notes, assuming a conversion rate of 66.6667 shares per $1,000 principal amount of notes and a cash payment in lieu of any fractional share interest. The conversion rate is subject to adjustment as described under “Description of Notes—Conversion of Notes.”
(2) Calculated based on Rule 13d-3(d)(i) under the Securities Exchange Act of 1934 using 143,253,755 shares of common stock outstanding on August 19, 2004. In calculating this amount, we treated as outstanding the number of shares of common stock issuable upon conversion of all of that particular holder’s notes. However, we did not assume the conversion of any other holder’s notes.
(3) Consists of shares of common stock issuable upon conversion of the notes, assuming a conversion rate of 66.6667 shares per $1,000 principal amount of notes and a cash payment in lieu of any fractional share interest. The conversion price is subject to adjustment as described under “Description of Notes—Conversion of Notes.”
(4) Citigroup Global Markets Inc. is a broker-dealer and was an initial purchaser of the notes that received customary compensation for such services.
(5) Additional selling securityholders not named in this prospectus will be not be able to use this prospectus for resales until they are named in the selling securityholder table by prospectus supplement or post-effective amendment. Successors of identified selling securityholders, including without limitation their transferees, pledges and donees or their successors, will not be able to use this prospectus for resales until they are named in the selling securityholder table by prospectus supplement or post-effective amendment.


Information concerning other selling securityholders will be set forth in additional prospectus supplements or post-effective amendments from time to time, if required. Information concerning the securityholders may change from time to time and any changed information will be set forth in prospectus supplements or post-effective amendments if and when necessary. In addition, the conversion price, and therefore, the number of shares of common stock issuable upon conversion of the notes, is subject to adjustment under certain circumstances. Accordingly, the number of shares of common stock into which the notes are convertible may increase or decrease.

 

The prospectus dated June 21, 2004, together with the prospectus supplements dated July 20, 2004 and August 5, 2004 and this prospectus supplement, constitutes the prospectus required to be delivered by Section 5(b) of the Securities Act of 1933, as amended, with respect to offers and sales of the notes and the shares of our common stock issuable upon conversion of the notes. All references in the prospectus to “this prospectus” are hereby amended to read “this prospectus (as supplemented and amended).”

 

Investing in the notes or shares of our common stock involves risk. See “Risk Factors” beginning on page 6 of the prospectus.

 

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus supplement or the accompanying prospectus. Any representation to the contrary is a criminal offense.