Kieretsu shift?
CMGI, meanwhile, is apparently close to buying Compaq Computer's
(CPQ: news, msgs) Alta Vista unit for $2 to $3 billion, according to
published reports. An acquisition would be a departure for CMGI, known
for its kieretsu-style of holding a disparate group of small Internet
companies. The term Keiretsu describes the complex interrelationships
among corporations in Japan.
"Alta Vista brings eyeballs to the CMGI family," said Ullas Naik, Internet
analyst at First Albany. "But it's got to be more than that. It's difficult to
figure out where they're going with this," Naik said.
Naik points out that CMGI, which holds some 20 percent of Lycos
(LCOS: news, msgs) could bundle Alta Vista with theWaltham, Mass.
portal, propelling Lycos to the ranks of the "uber portals." Uber is
German for super.
"This could make sense strategically if Lycos and Alta Vista are bundled
together," said Naik. "The question is -- what do you end up paying for it
given a purchase of this size could be a sizeable amount for CMGI."
CMGI currently has an $8.8 billion market cap.
CMGI, which lost 8 1/16 to 94 15/16 on Tuesday, fell fractionally
Wednesday. See full story. (the rest of the story was unavailable...update later?.)
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