CNET Network Inc.'s [CNET] decision to eliminate 120 positions, or 4% of its staff, on Wednesday drew a predictable response from activist investor Jana Partners, which is in the middle of a proxy fight for control of the technology information company. Jana said it was "astounding" that it took so long for CNET to examine the basics of reversing its ongoing underperformance and that it only occurred after Jana began to put pressure on the company.

Even though current management has laid out a number of initiatives to turn things around, activists still have a good shot at gaining control of the company, which has been a major disappointment for years.

CNET''s response to Jana Thursday afternoon was just as predictable. The company said it has "constantly innovated," and since 2007 has made "significant strategic, financial personnel and operational progress."

We particularly liked the following sentence, in which the company attempts to convince shareholders to keep the faith. Here it is in its entirety:

The company has sharpened its focus on core brands, disposed of underperforming assets, recruited industry leaders to replace almost half of its executive management team, made strategic acquisitions solidifying the company's leadership in key categories and geographies, added two independent members to its board, resolved legacy legal issues, realigned its work force, and is exploring ways of optimizing international operations.

Phew, how did they ever have time to write this press release?

Even if the activists gain control, it will be a tough task to turn things around. We're hearing talk the activists are pushing former CNET president Dan Rosensweig to return to the company to replace current CEO Neil Ashe. Rosensweig left CNET in 2002 to become chief operating officer at Yahoo! Inc. [YHOO], but left Yahoo! in 2006 and is now an operating principal at private equity firm Quadrangle Group LLC.  - David Shabelman

See March 26 regulatory filing from CNET
See March 27 statement from Jana Partners
See March 27 statement from CNET
See March 27 post from Ryan Block