We keep hearing about a Net Shepherd connection to AltaVista, here's a little info I just received by email about AltaVista.
CMGI bought 83% of the popular AltaVista search engine for $2.3 billion and Compaq gaining 16% of CMGI and a seat on its board.
"The acquisition of AltaVista is a big deal. It puts CMGI on equal footing in the portal space," says Steinberg. CMGI bought the well-trafficked search engine at a price Steinberg says is "half the value of Lycos," and he quotes analysts who predict CMGI will take AltaVista public within nine months. Traffic from AltaVista should help the other Internet companies in CMGI's portfolio, including portal network Planet Direct, Internet broadcaster I-cast, financial web site Raging Bull, and several e-commerce vendors including Furniture.com, Productopia and Carparts.com.
"It would not be surprising to see CMGI attempt to combine AltaVista with Lycos," Steinberg says. The combination would marry AltaVista's strong overseas presence and Lycos' solid US position. Also, AltaVista's $160 million in revenues would more than double Lycos' revenue base. Before that, Steinberg foresees progress on a new web site and a prospective IPO grabbing Wall Street's attention and pushing CMGI shares "over the top." Shares now trade at 29% below
their 52-week high, and Steinberg just raised his recommendation to 'buy.'
Now doesn't all that make for a very interesting couple of months! Remember Ric mentioned an IPO in about 9 months as well hmmmm
Mike |
