CBS (CBS 24.23 -0.59) announced it has entered into an agreement to acquire CNET Networks (CNET 11.41 +3.46). Under the terms of the agreement, CBS will make a cash tender offer for all issued and outstanding shares of CNET Networks for $11.50 per share, representing an equity value of approximately $1.8 bln.

Lehman said that, following recent checks, they are encouraged by order trends and new product execution for Intel (INTC 24.97 +1.13). While global macro uncertainties could clearly disrupt outlook later in CY08, firm believes solid strength in notebook and server segments could render their Q2 and CY08 ests conservative.

Needham upgraded SanDisk (SNDK 33.10 +1.68) to Buy from Hold with a $38 tgt. Firm believes NAND prices will remain stable in the next few months as the market reaches near-term supply/demand balance, and better pricing will drive upside to ests. Additionally, they believe SNDK's competitive position is improving with more leverage in the model. While the shares have had a strong run since bottoming in March, firm sees more upside on higher ests and more P/E expansion.

Collins Stewart upgraded Yahoo (YHOO 27.75 +0.61) to Hold from Sell with a tgt of $28. Firm says though Microsoft (MSFT 30.45 +0.52) has not come back to YHOO, and YHOO has not approached MSFT, they believe that the "event driven" thesis will prevail, because: 1) investors activism is rising with a likelihood of a new slate of directors for YHOO on 5/15 by activists; 2) body language from YHOO and MSFT do not suggest both cos have really moved on. Had both companies moved on, firm would have expected YHOO to announce their relationship with GOOG and MSFT to be acquisitive and announce some radical changes in its search strategy.

Amtech says that their recent checks indicate DRAM pricing is up 3-5% in the second half of May. Checks indicate NAND pricing is flat. Firm is surprised NAND is not getting support towards spot yet, and think it is largely because the DRAM market is getting healthy in terms of capacity before NAND. That said, sold out iPhones and general NAND demand from other applications are clear positives for the industry.

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