CMGI What is the latest news on this stock? Message Board

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Technology Stocks : CMGI What is the latest news on this stock?

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To: Mark Peterson CPA who wrote (15900)	1/21/2000 10:39:00 PM
From: TimbaBear	Read Replies (1) of 19700

Mark, I would like to ask your opinion on how this sale of Adforce and Flycast to Engage is likely to impact the bottom line of CMGI. According to the recent CMGI Annual Report (pp72-73), CMGI paid approx. 500 million for Adforce and approx. 700 million for Flycast. Even if you throw in the cost of 193 million for Adknowledge (which I think was merged into Adforce at some time), that still only comes to approx. 1.4 Billion. If you value the ENGA shares on the day of the announcement (which I don't know if they can do it that way or not), 32 million shares of ENGA @ approx. 70/share is about 2.25 Billion (the figures I heard from the press were around 2.4 to 2.5 Billion)....that still leaves an apparent gross profit of 850 million for CMGI....how is this likely to be accounted for (i.e. as a profit or not)?....and, how is the added value since the announcement likely to be handled? It seems like the market is just saying "Ho Hum" from the CMGI side of things, but DW just unlocked almost a billion dollars of value here if I'm not mistaken. Surely would appreciate your feedback. Timba

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