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

To: Lockeon who wrote (11398)	7/2/1999 10:47:00 PM
From: Jenne	Read Replies (1) \| Respond to of 19700

CMGI Gets AltaVista--And a New Strategy It's one thing to be a brilliant financial engineer in the Internet economy, and another to run a Web company. David S. Wetherell, the chairman of trend-setting Internet incubator CMGI Inc., is about to find out just how different they are now that he is buying Compaq Computer Corp.'s AltaVista search site. Until now, Wetherell has been known primarily for his knack in selecting promising Internet ventures to invest in. That has made CMGI a popular stock for those who want to do their Web investing by proxy. Compaq endorsed Wetherell's Web savvy by taking a 16.4% stake in CMGI and becoming its largest outside shareholder. Still, acquiring AltaVista is the biggest test so far of Wetherell's strategy to make CMGI into a premier Internet operating company. Wetherell says he can do a lot more with AltaVista than did Compaq, which never developed an effective strategy for the service. His plan: to rev up what is now the 15th-largest Web portal with new content and services drawn from CMGI companies, including Raging Bull Inc., a popular financial message board, and iCast, a wholly owned CMGI subsidiary that's developing Webcasting services. AltaVista will also be at the heart of CMGI's efforts to sell customized portals to companies looking to quickly establish a Web presence. CMGI companies can provide Web-hosting, advertising placement, customer profiling, and other services while AltaVista serves as the client's window to the Web. ''It's the fastest growing market to come, bigger than all portals today,'' says Wetherell. TO THE RESCUE. The AltaVista deal also helps Wetherell dodge a potential bullet. Had he not consummated a major acquisition by Oct. 31, CMGI risked being classified as a mutual fund by the Securities & Exchange Commission. Last year, CMGI crossed an SEC threshold when more than 40% of its assets were publicly traded securities in companies that CMGI does not control. Since mutual funds aren't allowed to exercise influence over the companies they invest in, the classification would effectively bind Wetherell's hands. He says that was not a motive behind the deal, but concedes that it ''is a nice side-benefit.'' In the meantime, to refashion CMGI, Wetherell must demonstrate he can really draw large numbers of Webheads to AltaVista. ''The question is, can CMGI really turn this collection of companies into a network, and build a lot of traffic?'' says Keith E. Benjamin, an analyst with BancBoston Robertson Stephens. That is the peak Wetherell hopes to climb with AltaVista. By Paul C. Judge in Boston BUSINESSWEEK