San Francisco - An informal inquiry into stock options granting practices at technology publisher CNET Networks has been upgraded to a formal investigation, the company said in its second quarter earnings statement.

"In May 2007, we learned that the SEC issued a formal order of investigation and served subpoenas on certain of our former officers in connection with its inquiry," the company wrote in the filing.

"We are cooperating, and will continue to cooperate fully with the United States Attorney for the Northern District of California and the SEC."

CNET chairman and CEO Shelby Bonnie resigned in October 2006, after he was found partially responsible by a special committee for the backdating of employee stock options.

The company's websites include News.com, GameSpot, ZDNet, TV.com and MP3.com.

Related Links:
http://biz.yahoo.com/e/070801/cnet10-q.html

http://tinyurl.com/2pwqyg (Reuters)

http://www.cnet.com