Compaq, CMGI, Shanghai Government Plan
Internet Joint Venture
12/13/99 10:08:00 AM
Source: Bloomberg News
Shanghai, Dec. 13 (Bloomberg) -- Compaq Computer Corp., the world's
No. 1 personal-computer maker, and Internet venture-fund company
CMGI Inc. plan to form a joint venture with the Shanghai government's
investment arm to offer Internet services in China.
Compaq and CMGI said they've begun forming an alliance with Shanghai
Information Investment Inc., the government's vehicle for investing in
Internet businesses, that will lead to a joint venture. The Shanghai-based
venture will build and operate Web and electronic-commerce services for
public and private businesses. Terms weren't disclosed.
Compaq and CMGI have grown closer this
year through a series of agreements,
including Compaq becoming CMGI's
largest outside shareholder through its
purchase of a majority stake in Compaq's
AltaVista Internet search site. Both also
have made moves into Asia this year.
''The expansion of CMGI and its operating
companies into new international markets
will be a recurring theme for the coming
year, and our relationship with SII extends
the CMGI network with a powerful base of
Asian partners,'' CMGI Chairman and Chief
Executive David Wetherell said.
Shanghai Information holds a controlling interest in Internet infrastructure
and commerce companies in China, including Shanghai Cable Network, a
high-speed Web access network. Investors in Shanghai Information
include SPTA, parent of Shanghai Online, an Internet service provider in
China.
In June, Compaq's AltaVista search engine teamed with Sina.com, the
top Internet site for the Chinese-speaking community, to let users find
online data in Chinese and English.
In September, CMGI made its first investment in Asia by agreeing with
Hong Kong-based Pacific Century CyberWorks Ltd. to swap stock, giving
CMGI a 5.5 percent stake in CyberWorks and CyberWorks a 3.5 percent
stake in CMGI.
Cyberworks provides high-speed Internet-linked electronic- commerce
and entertainment services to homes and businesses.
Houston-based Compaq and Andover, Massachusetts-based CMGI have
formed several alliances this year.
Compaq will use technology from CMGI's Engage Technologies Inc. unit
to tailor its Internet content to individual customers and post banner ads
and promotions on its Web site.
Compaq shares rose 5/16 to 25 3/8 in early afternoon trading. CMGI rose
6 5/16 to 200 3/8. |
