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Technology Stocks : CMGI What is the latest news on this stock? -- Ignore unavailable to you. Want to Upgrade?

To: sunny who wrote (10801)	6/24/1999 7:57:00 AM
From: Guardian	Read Replies (3) \| Respond to of 19700

Having started all this in tuesday's posts (see footnote) i have followed with interest the analysts and threaders read of the deal for alta-vista et al from cpq. I have yet to read any analysis that concludes the deal would be good for cpq (as cmgi long, i personally don't care). Putting aside cmgi motivations linked to SEC-mutual fund-legal arguments, I think the analysts may be missing a key fact. everyone says cpq needs the portal/e-commerce visibility to keep up with likes of gateway (buying elnk) and Dell (becoming or buying an isp - md's words yesterday). The pro for cpq selling is that it would allow them to concentrate on core business and that their management would probably fail at execution if they held and developed those internet assets. So what can we conclude: they need the net exposure but are hard pressed to do it on their own. effectively, they need help. Enter CMGI. From CMGI's side, many question the deal based on cost (both valuation of the assets to be purchased and the financial drain on cmgi cash/stock). few question the strategic value of portal/search engine for the cmgi family of holdings and their shareholders. Analysts question the relative benefit of the purchase claiming that a lcos acquisition would make more sense. But then there's that nasty little dw/davis squabble over the USA networks bid for lcos and whatever detriment it that has done to the relationships between lcos and cmgi. BOTTOM LINE AND A SUGGESTION: Will the deal happen? Probably. Why? IMHO it will be tied to cmgi's holdings in lcos. It seems to me the lcos stock holdings and the reach of lcos are deal sweeteners which could be brokered by DW to give CPQ what it needs (net exposure) while reducing the overall liability to cmgi. It also would enable cmgi and lcos to go their own ways on good terms. Now I don't claim to know the legality/issues that may have to be addressed for cmgi to play the lcos card, but logic points to the fact that it will. comments welcome! ----------------------------------------------------------- My original Post On the portal opportunity: Message 10223747 My follow-up Post On reason for no lcos deal as alternative: Message 10224813