Here it is:
May 13, 1999
Dow Jones Newswires
Gateway To Invest $200M For Ownership Stake In CMGI
Dow Jones Newswires
SAN DIEGO -- Gateway 2000 Inc. (GTW) agreed to invest $200 million for an ownership stake in CMGI Inc. (CMGI), subject to certain customary terms and conditions.
The exact size of the stake was not disclosed.
In a join release, Gateway 2000 Inc. and CMGI Inc. said the companies formed a strategic alliance and will seek out collaborative business and investment opportunities on the Internet.
The strategic alliance will enhance Gateway's Internet and e-commerce initiatives and provide additional products and services to Gateway clients.
Gateway will integrate various products and services within CMGI's growing network of Internet companies. In addition, CMGI and Gateway will treat each other as a preferred vendor, the companies said.
The two companies will also explore business opportunities with CMGI's majority-owned companies, including Activerse, Adsmart, Engage Technologies, ICast, Planet Direct, NaviNet, NaviSite, Magnitude Network and ZineZone.
Ted Waitt, Gateway's chairman and chief executive said " We intend to collaborate on a range of opportunities, including site development and interactive marketing solutions. The new gateway.com site, our gateway.netSM Internet access service, SpotShop.comSM online sales, and now our alliance with CMGI, all serve to solidify our position as a major Internet player."
On Wednesday, NYSE-traded shares of Gateway closed at 68 3/16, down 1/2, or 0.7%. Nasdaq-traded shares of CMGI closed at 239 3/4, down 4 15/16, or 2%.
Gateway provides complete technology personalization.
CMGI Inc. is an Internet operating company.
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