CNET Networks (NDAQ:CNET) moved higher this morning after a group of investors, led by Jana Partners, nominated seven candidates to the company’s board of directors. The investors are hoping to curb the stock’s continuing decline by assembling an experienced team of directors to orchestrate a turnaround. Shareholders are hoping to see some changes as shares sit off their 52-week lows but well below intrinsic value.

“This effort is about taking an underperforming company and increasing shareholder value by building on its top-notch editorial talent and premier internet assets,” said Barry Rosenstein, Manaing Partner at Jana Partners. “Together with Paul Gardi and Spark Capital, we have assembled a group of nominees we believe has the technical skills and business experience to reverse CNET’s ongoing underperformance and start delivering value for shareholders.”

Jana Partners noted that in addition to its 8 percent voting stake in CNET, it also has an 8 percent non-voting interest and recently enlisted Sandell Asset Management – which holds a 5 percent non-voting interest – as an ally. However, the investors may have run into a small problem with the company’s bylaws, which prevent any shareholders from nominating directors until they have held their stock for one year – a provision Jana calls “discriminatory”.

In the end, this is good news for shareholders as it could finally mean change in a company that has only seen problems for the last few years. The investor group’s nominations to the board have vast experience and would likely be able to bring some change. Combined, these factors make CNET a stock worth watching!

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