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

To: bargainman who wrote (11092)	6/29/1999 2:21:00 PM
From: Mark Peterson CPA	Respond to of 19700

Here's a blurb on the matter.... CMGI Buying Compaq's AltaVista NEW YORK, Jun 29, 1999 (AP Online via COMTEX) -- CMGI Inc., a major investor in Internet businesses, is buying Compaq Computer Corp.'s AltaVista Web site in a $2.3 billion deal that gives it a new Internet portal to draw visitors to its array of online services. The deal today ends months of speculation over the fate of Compaq's property, which offers a powerful search tool for navigating the Web but hasn't enjoyed the popularity of rival Web portals Yahoo!, Excite and Lycos. CMGI, based in Andover, Mass., plans to keep AltaVista's 475 employees in Palo Alto, Calif. Rod Schrock will remain on to run AltaVista. CMGI plans to use AltaVista as a hub to lead Web surfers to other corners of its online empire, including stakes in lesser-known properties such as Ancestry.com, CarParts.com, Furniture.com and Raging Bull, a financial investment forum. For its part Compaq, the world's second-largest computer maker, hopes to sell more machines to CMGI's Internet companies to host their Web sites and conduct online transactions. Compaq plans to direct users of its home and business computers to CMGI's Web sites. The companies also will team up to create custom-tailored Web sites for Compaq's business customers. CMGI intends to spin off AltaVista in an initial public stock sale at a date soon to be set, CMGI chief executive David Wetherell said in a phone interview. CMGI has taken numerous Web ventures public in its strategy to reap big profits from investors' enthusiasm for Internet-related businesses. The two companies first approached each other late last year about working together, but talks about an AltaVista deal didn't accelerate until recent weeks, Wetherell said. Compaq chief technology officer and senior vice president Bill Strecker, who is leading Compaq's Internet strategy, said the computer maker saw CMGI's stable of properties as a way to quickly flesh out AltaVista's Web services. CMGI agreed to buy an 83 percent stake in AltaVista, with Compaq retaining the rest. CMGI is paying 19 million of its common shares as well as preferred shares equivalent to 1.8 million common shares, worth a total of $2.03 billion at Monday's closing price of $97.68 3/4. In addition, CMGI is paying Compaq another $220 million over three years. Investors applauded the deal, driving up CMGI's stock 9 percent, or $8.93 3/4 a share at $106.62 1/2, by midday on the Nasdaq Stock Market. On the New York Stock Exchange, shares of Compaq were up 81 1/4 cents to $23.12 1/2. The agreement is subject to shareholder and regulatory approvals. Compaq, based in Houston, acquired AltaVista as part of its $9 billion purchase of computer maker Digital Equipment Corp. last year. AltaVista, in addition to its widely used search engine, offers news, stock quotes and shopping services and took in about $40 million in revenue last year. But it ranked only No. 15 among networks of Web sites last month, with 9.5 million visitors, according to the Media Metrix research firm. Copyright 1999 Associated Press, All rights reserved. -0- By DAVID E. KALISH