FWIW
COMPAQ: Compaq and CMGI form strategic Internet partnership; CMGI
acquires Altavista
JUN 30, 1999, M2 Communications - Compaq and CMGI (Nasdaq: CMGI), the
leading diversified Internet operating company, today announced a
comprehensive strategic partnership that will enable both companies to
aggressively pursue Internet-related business and market opportunities.
The strategic partnership is aimed at providing the best Internet
services and solutions to both businesses and consumers. The two
companies will drive the Internet PC market by combining Compaq's
consumer PC leadership with CMGI's network of leading Internet
destinations and enabling technologies. CMGI will acquire control of
Compaq's AltaVista business and its related properties (Shopping.com
and Zip2) and will integrate the popular AltaVista search engine into
its network of 40 leading Internet operating companies to deliver a
superior online experience to Internet users both at home and at work.
Dave Wetherell, Chairman and CEO, CMGI said: "Our partnership will
define and lead the consumer and enterprise market, from PC to web, by
combining Compaq's consumer Internet PC, commercial computing and
infrastructure leadership, global reach and worldwide customer base
with CMGI's network of leading Internet technologies and destinations."
Benjamin M. Rosen, Chairman and acting CEO, Compaq said: "CMGI has
established itself as a clear leader in the Internet economy. As CMGI's
largest outside shareholder and its principal strategic partner, we
look forward to mutually driving future Internet opportunities for the
benefit of the Internet marketplace, our respective shareholders,
customers and employees."
Under the terms of a definitive agreement, Compaq will transfer 83
per cent equity ownership in the AltaVista business to CMGI. Compaq
will retain 17 per cent equity ownership in the AltaVista business and
hold a Board seat. In return, Compaq will receive 19 million CMGI
common shares and CMGI preferred shares equivalent to 1.8 million CMGI
common shares, which combined, would represent a 16.4 per cent fully
diluted equity stake in CMGI. In addition, CMGI will issue a $220
million three-year note to Compaq, bringing total consideration for
CMGI's 83 per cent ownership in the AltaVista business to approximately
$2.3 billion, implying a total value of $2.7 billion for AltaVista.
Compaq will also take a seat on the CMGI Board of Directors and plans
to announce the appointment to this new position in the coming months.
The agreement, subject to normal regulatory approvals, is binding on
both parties and does not require shareholder approval for the closing.
Global Business and Customer Benefits
The partnership between CMGI and Compaq will expand the range of both
companies' Internet business capabilities.
Under the agreement, CMGI designates Compaq as its strategic IT
partner, enabling CMGI, its Internet companies and their customers to
benefit from Compaq's global leadership in consumer products, PC
products, and enterprise-class systems, solutions and services.
Compaq plans to integrate the diverse Internet capabilities of CMGI's
pure-play network of 40 Internet companies into its consumer Presario
Internet PCs, commercial PC and enterprise-class solutions offerings.
This integration includes web browser and keyboard access to the
AltaVista Network and other CMGI Web services.
Importantly, the alliance will enable Compaq and CMGI to offer
Compaq's enterprise customers an array of business-to-business and
business-to-consumer services to create customised vertical portals
along with other comprehensive Internet solutions. With Compaq as its
strategic IT partner, CMGI's network of businesses will be able to take
advantage of Compaq's NonStop eBusiness solutions. This will ensure
that the IT systems fundamental to their success will maintain
uninterrupted operations with complete data integrity and unlimited
scalability, supporting continual growth and ease-of-management.
CMGI will also collaborate with Compaq's world-class research labs
and business groups to develop innovative, high-value Internet
technologies and next-generation Internet appliances, and will foster
business opportunities to exploit them.
Building World-leading Network with AltaVista CMGI, Compaq and the
AltaVista management team - headed by Rod Schrock - will work together
to establish AltaVista as one of the world's leading Internet networks.
AltaVista will integrate services from CMGI Internet companies to
create a premier Internet network for both on-line consumers and
Web-based businesses.
Yesterday, AltaVista announced several new services that form the
foundation of a premier media and commerce network. These include an
updated search site, the world's first microportal service, 42 local
community portal partners, and redefining Shopping.com as the
ultra-satisfying place to shop.
"We believe in the power of the Internet and in the power of leading
portals to capture and retain users," added Wetherell. "The integration
of AltaVista services with CMGI's extensive network of best-of-breed
Internet operating companies will create a formidable network. We see
enormous opportunity ahead as we execute on the dynamic potential of
our synergies."
Rod Schrock, president and CEO of AltaVista Company said: "CMGI's
Internet leadership will greatly accelerate the AltaVista strategy
announced just yesterday. By combining AltaVista services with CMGI's
extensive network of community, infrastructure and e-commerce Internet
companies, there is no limit to our long term potential."
CMGI Background
A recognised leader in the Internet economy, CMGI (Nasdaq: CMGI) has
built a substantial base of Internet operating companies and, through
its @Ventures affiliates, has invested in a growing portfolio of
synergistic Internet enterprises which enhance the value of its core
holdings. This unique method of generating equity for its shareholders
is what CMGI calls "creating net value." Microsoft, Intel and Sumitomo
hold minority positions in CMGI.
CMGI's majority-owned subsidiaries include Activerse, Adsmart,
Engage, iCast, Magnitude Network, NaviSite, NaviNet, Planet Direct and
ZineZone. The Company's @Ventures affiliates have ownership interests
in Lycos, Inc. (Nasdaq: LCOS), Critical Path (Nasdaq: CPTH), Silknet
(Nasdaq: SILK), Ancestry.com, Asimba, blaxxun, BizBuyer.com,
CarParts.com, Chemdex, eCircles.com, Furniture.com, HotLinks, KOZ.com,
MotherNature.com, NextMonet.com, NextPlanetOver.com, OneCore.com,
ONElist, Productopia, Promedix.com, Raging Bull, Softway Systems,
Speech Machines, ThingWorld.com, Universal Learning Technology,
Vicinity, Virtual Ink and Visto.
CMGI is also the majority-owner of SalesLink, InSolutions and
On-Demand Solutions, leaders in direct marketing, fulfillment and
turnkey arenas. CMGI Corporate headquarters is located at 100
Brickstone Square, Andover, MA 01810. Telephone: 978-684-3600. Fax:
978-684-3814. Additional information is available on the company's Web
site at cmgi.com.
AltaVista Background
AltaVista Company is the premier online media and commerce network.
The company integrates unique Internet technology and services to
deliver relevant results faster for both individuals and Web-based
businesses. By combining distinctive AltaVista brand services with
'best of the Web' partnerships, the AltaVista Network creates the most
satisfying Internet experience. AltaVista is building on its heritage
of technology and innovation leadership, offering award-winning
services including: AltaVista Search, AltaVista Local Portal Services,
AltaVista MicroPortal and AltaVista's Shopping.com. AltaVista, already
a top-10 Internet destination, enjoys one of the Web's most loyal and
satisfied user-bases. For more information, visit AltaVista at
altavista.com.
Compaq Background
Compaq is the second largest computer company in the world and the
largest global supplier of personal computers. Compaq develops and
markets hardware, software, solutions, and services, including
industry-leading enterprise computing solutions, fault-tolerant
business-critical solutions, networking and communication products,
commercial desktop and portable products and consumer PCs. The company
is an industry leader in environmentally friendly programmes and
business practices.
Compaq was established in the UK in 1984 and is headquartered in
Richmond, Surrey. Its products and services are sold and supported
through a network of marketing partners across the UK.
Customer advice, reseller locations and information about Compaq and
its products can be found at compaq.co.uk or by calling the
Compaq Call Centre on 0845 270 4000. This is the Compaq UK telephone
number for publication (all calls are charged at local rates).
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Communications
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