CNET is on an acquisition spree, in keeping with its digital lifestyle credo it is pursuing: it is acquiring privately-held Twofold Photos, and its Webshots site. The news comes a day after Google announced it was buying rival site/service Picasa.

Webshots is a leading community/sharing photography site. Under the terms of the agreement, CNET Networks will pay $60 million in cash and $10 million of deferred consideration. The transaction is expected to close in Q3 this year.

Webshots has a desktop software which enables picture sharing. The company has also moved into wireless/mobile photography space and moblogging, as it is called. Its software also enables other mobile services like wallpapers and wireless picture sharing.

CNET expects that Webshots will contribute approximately $3.2 million and $3.7 million in revenue, and $1.7 million to $2.0 million in operating income before depreciation and amortization in Q4. As a stand-alone entity, Webshots is expected to generate revenues of $12 million to $13 million and operating income before depreciation and amortization between $6.75 million and $7.25 million for the full year 2004.

Quick take: the idea is to combine the community that Webshots has developed and package CNET’s own reviews on digital cameras and related products, along with shopping and comparison buying services.

For more on CNET and its future strategy, read our dedicated section…