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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Ada Marie who wrote (64001)	6/23/1999 2:06:00 PM
From: Ada Marie	Read Replies (1) \| Respond to of 97611

Kieretsu shift? CMGI, meanwhile, is apparently close to buying Compaq Computer's (CPQ: news, msgs) Alta Vista unit for $2 to $3 billion, according to published reports. An acquisition would be a departure for CMGI, known for its kieretsu-style of holding a disparate group of small Internet companies. The term Keiretsu describes the complex interrelationships among corporations in Japan. "Alta Vista brings eyeballs to the CMGI family," said Ullas Naik, Internet analyst at First Albany. "But it's got to be more than that. It's difficult to figure out where they're going with this," Naik said. Naik points out that CMGI, which holds some 20 percent of Lycos (LCOS: news, msgs) could bundle Alta Vista with theWaltham, Mass. portal, propelling Lycos to the ranks of the "uber portals." Uber is German for super. "This could make sense strategically if Lycos and Alta Vista are bundled together," said Naik. "The question is -- what do you end up paying for it given a purchase of this size could be a sizeable amount for CMGI." CMGI currently has an $8.8 billion market cap. CMGI, which lost 8 1/16 to 94 15/16 on Tuesday, fell fractionally Wednesday. See full story. (the rest of the story was unavailable...update later?.)

To: Ada Marie who wrote (64001)	6/23/1999 2:27:00 PM
From: Ada Marie	Read Replies (1) \| Respond to of 97611

Report on CNBC "Street Signs"...Steve Frank reported the following: - Deal might be announced by the end of the week. - Sale will be north of 2 Billion...but closer to 2 Billion - 2+ Billion will be paid with CMGI stock Responses from analysts he contacted ranged from neutral to positive - the deal is safer than spinning off AltaVista since their is a declining interest in Internet IPO's - Kumar stated that he thought there were positive strategic benefits Maria noted that she spoke to an analyst who was negative on the deal - the analyst said that AltaVista generated 3 million for CPQ and felt this sale was a mistake