AltaVista Revamps Web Site as Negotiations Heat Up
Jun. 29 (Houston Chronicle/KRTBN)--The AltaVista Co. on Monday unveiled
a redesigned site that puts its online shopping and local-content
acquisitions out front, even as Compaq Computer Corp. continues talks
to sell the Internet subsidiary to CMGI.
Rod Schrock, AltaVista's chief executive, said discussions between
Compaq and CMGI -- a technology venture-capital company -- are "hot and
heavy," but that nothing has been finalized.
He also said AltaVista still plans to go ahead with an initial public
stock offering later this year, even if it is purchased by CMGI.
A source close to the negotiations said the deal could be completed
and announced as early as today.
Compaq would retain a significant stake in AltaVista, sources said.
Estimates of the purchase price for AltaVista have fallen in the
range of $2 billion.
Nevertheless, AltaVista is pushing ahead with plans announced earlier
this year to incorporate electronic commerce and hometown content into
its site, which traditionally is known for speedy Web searches that
produce a large number of matches, or "hits."
"Today is all about unlocking the potential of AltaVista," Schrock
said.
In doing so, AltaVista is chasing other Internet destination sites --
often called portals -- that have gotten a head start, including Yahoo,
Lycos, Excite, America Online's Web page and the Microsoft Network.
"They are pretty far behind, and they are cementing these strategies
late in the game," said Patrick Keane, an analyst in New York with
Jupiter Communications, which tracks the online industry. "But I don't
think all the winners have been placed."
The new AltaVista is designed so that its units are all linked to the
main page at www.altavista.com, but each of them has its own identity.
The cluster of sites will be known as the AltaVista Network, Schrock
said.
They include Shopping.com, the online shopping site; and Zip2, which
organizes local content generated by newspapers. AltaVista is
showcasing the Houston Chronicle's Houston4U.com as an example of how
its local portals will work.
"They don't all have to have AltaVista branding, and in some cases you
don't want that," Schrock said. "For example, you can't deliver a truly
exceptional local view of the Internet from our ivory tower in Palo
Alto, Calif.," where AltaVista is based.
Schrock said the changes are just the beginning of an evolution that
will continue through this year and into next in hopes of increasing
the search engine's audience.
They include a number of incentives to draw visitors to the AltaVista
Network, including:
A $5 million cash giveaway to those who use a piece of software dubbed
the AltaVista MicroPortal, which allows quick searches and access to
personalized information. The software, which is an update of a program
previously known as the AltaVista Tracker, will be available starting
in late July.
AltaVista will refund 125 percent of the purchase price for anything
bought at Shopping.com if the buyer isn't completely satisfied. Schrock
said this policy has been in place since May, and so far only seven
customers out of 100,000 have demanded the refund.
Shopping.com also will offer auctions of merchandise pulled from its
seven online areas. Bidding starts at $1 for each item, with no
reserve, or minimum amount required to sell the item.
AltaVista will guarantee the "freshness" of the index of Web sites
used in searches. Schrock said the company will completely refresh the
index every 28 days, with the ultimate goal of refreshing the index of
hundreds of millions of Web pages daily.
Customizable local portals that have been dubbed AltaVista Zip2
Homebase. Users will be able to indicate what kind of local news and
information they want to see.
The Chronicle's Houston4u.com site is one of the first of 42 local
portals operated by local newspapers around the country.
Jack Stanley, the Chronicle's senior vice president of technology and
operations, said the new site supplements the newspaper's
HoustonChronicle.com site.
"This will allow the Chronicle to have two sites that appeal to people
for different reasons," Stanley said.
Houston4U.com "is more geared to what you want to do today, what you
are going to do tomorrow or next week, and how to find it."
The site allows visitors to customize the way different kinds of
information are displayed, including weather, daily news, sports,
lottery and horoscope information and a list of favorite Web sites. The
Houston site offers an online calendar and the Chronicle's Directory
Center.
Schrock said that, eventually, the main AltaVista page itself will
allow for similar customization.
By the end of the year, AltaVista also will beef up its core strength
-- Web searching -- by offering 25 new features to enhance searches.
By Dwight Silverman
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