CMGI, Inc. (Nasdaq-CMGI) invests in startup Internet companies with the goal of bringing many of those companies public through Initial Public Offerings (IPO).
Beginning with the offering of Engage Technologies (Nasdaq-ENGA) on July 20, 1999, CMGI instituted the Affinity Program, also known as a Distributed Share Program (DSP), where CMGI shareholders have the opportunity to
participate in the IPOs of those companies for which CMGI holds a majority interest. On October 22, 1999, Navisite (Nasdaq-NAVI) became the second CMGI company to be offered to shareholders through participation in a DSP.
The terms of the DSP are under constant review by CMGI and are subject to change at any time in the future. The following are a sampling of the requirements for the first two offerings:
1. Each participating shareholder must have at least 100 shares of CMGI stock in any single account in their name.
2. The shareholder must be a U.S. citizen and must reside in the U.S.
3. The shareholder must open an account with Wit Capital
(http:/www.witcapital.com) and fund the account with a minimum of $2,000. Wit Capital manages the DSP for CMGI.
4. The number of shares allocated to the DSP are limited and every
applicant may not receive an allocation, however, past allocations have been exactly 100 shares of the new public company. The 100 share limit is intended to allow as many shareholders as possible to participate in the program. There were 600,000 shares allocated for the ENGA IPO, and 825,000 for NAVI. If the IPO is over subscribed, allocations are determined by a random number generator.
CMGI is a dynamic company. In early 1999 its stable of companies included approximately 25. By December 1999 that number grew to almost 60. CMGI plans to double that number during 2000. Many of these companies will be majority-owned and available to shareholders through a DSP. I can't think of another company that offers its shareholders a dividend as tremendous as
the CMGI DSP.
If you are skeptical, check out the current prices for ENGA (IPO at $15) and NAVI (IPO at $14).
This thread will be a place where news of new DSP offerings can be posted and questions regarding the next DSP can be asked and answered. |
