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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Maarten Z who wrote (8567)	6/23/1999 2:21:00 PM
From: Rande Is	Read Replies (1) \| Respond to of 57584

Maarten, I think it makes perfect sense that CMGI would buy AltaVista from Compaq. When CPQ originally bought Digital. . .they were more interested in the computer maker than the search engine. CPQ has not shown that they care about AltaVista. . .and have not integrated it into any of Compaqs plans. . .so why not sell it if you aren't going to IPO it or use it? They talked of IPO, but no promises. CMGI specializes in IPOs for internet entities. . .and AltaVista could be a huge one under CMGI. As far as DCLK goes. . . DCLK provides AltaVista with banner ads, but they provide many with them. . . and I don't see how AltaVista being bought by CMGI would affect any agreements between DCLK and AltaVista. When you buy an apartment complex, you don't evict everyone and fire the management. . . unless you are losing money. AltaVista is a top ten site for usage. . .that is enormous as the internet goes. So when you say, "If deal goes thru I would expect that CMGI would not renew any advertising contracts with DCLK." . . . I don't understand why. CPQ seems doomed either way on this deal. . . the valuation hope was for AltaVista's IPO. . . selling them, makes CPQ an appliance maker that has some ideas for some other appliances. . . .sort of like a Sunbeam or a Westinghouse. DCLK and CMGI will both bode well from this deal, in my opinion. . . since I would believe that CMGI would provide AltaVista with whatever support it needs to stay competitive and even exceed the competition in ways. . . . plus, again. . . when IPO happens. . public perception is increased. . .so AltaVista is seen bigger than it already is. CD Now needed that. They are enormous. . .but for whatever reason, the investment public has never "perceived" them as such. And that is why they flounder, in my opinion. Rande Is