CMGI and Cyberworks Take Relationship Forward
fnews.yahoo.com
Director of Online Research: Dave Sterman (3/1/00)
Following on the heels of an investment made last fall, CMGI (NASDAQ:CMGI -
news) furthered its relationship with Hong Kong-based Pacific Cyberworks
(NASDAQ:PCCLF - news) . The two companies agreed to swap an additional $500
million in stock with each other, and will move more aggressively to port CMGI
web sites into Asia.
Sites such as AltaVista.com, as well as Engage (NASDAQ:ENGA - news) , Navisite (NASDAQ:NAVI - news) , and
Navinet will develop regionalized versions to handle an expected boom in Asia internet usage. In addition, the two
firms hope to replicate CMGI's successful incubation program in Asia, and both sides have collectively earmarked more
than $1 billion towards the effort.
Pacific Cyberworks acted as the catalyst in the deal, after it agreed to acquire Cable & Wireless/Hong Kong Telephone.
CMGI will own a chunk of stock in the newly-merged entity. The Chinese Government will also own a 10% stake in the
entity, hopefully ensuring minimal resistance as the companies develop an aggressive web presence.
Once the deals close, CMGI will own roughly 625 million shares of Pacific Cyberworks, valuing its stake north of $2
billion. The deal is a clear winner for CMGI as it will boost the company's nascent efforts to expand into international
markets. As investors better understand the ramifications of the deal, shares of CMGI could appreciate sharply.
Updated on March 1, 2000 with CMGI at $118.38
Recommended on December 11, 1999 at $97.03.
(Magic 25 is a diversified portfolio of stocks that Individual Investor believes will outperform the market over the course of
the year. In 1999, the Magic 25 portfolio was up 79.3%. On average the portfolio has risen 31.6% annually.) |
