FWIW, more of the same:
Compaq and CMGI Announce Close of Strategic Internet Alliance Agreement
HOUSTON and ANDOVER, Mass., Aug 19, 1999 (BUSINESS WIRE via COMTEX) --
Compaq Computer Corporation (NYSE:CPQ)
Editor's Summary:
-- CMGI acquires majority stake in AltaVista; Compaq becomes largest
outside shareholder in CMGI
-- Compaq and CMGI move quickly to implement strategic partnership
-- CMGI and AltaVista begin integration and build-out of AltaVista
Compaq Computer Corporation (NYSE:CPQ), a top global supplier of
information technology systems and solutions and worldwide PC leader,
and CMGI, Inc. (Nasdaq:CMGI), the leading diversified Internet
operating company, today announced the completion of CMGI's acquisition
of a majority stake in AltaVista and Compaq's position as the largest
outside shareholder in CMGI effective August 18, 1999. The two
companies announced a comprehensive strategic alliance June 29 that
enables both companies to aggressively pursue cooperative
Internet-related business and market opportunities.
"Our partnership with Compaq marks an important milestone in the
development of the Internet marketplace," said David Wetherell, CMGI
Chairman and Chief Executive Officer (CEO). "Together, we will lead the
consumer and enterprise market from PC to Web, combining Compaq's
worldwide leadership in consumer and enterprise computing with CMGI's
network of leading Internet destinations and technologies. In addition,
the integration and build-out of AltaVista is on schedule and
represents a very real opportunity for significant growth through the
integration of various CMGI related services."
"The Internet is rapidly becoming the backbone of business; it's truly
the most fundamental change in information technology since the
invention of the PC," said Michael D. Capellas, Compaq President and
CEO. "The strategic partnership with CMGI will dramatically enhance
Compaq's Internet position and enable us to offer the most compelling
Internet-enabled products, solutions and services to our customers."
The Compaq and CMGI partnership is aimed at providing the best Internet
services and solutions to businesses and consumers. Through the
technologies and services of CMGI's affiliated companies and NonStop(R)
eBusiness solutions from Compaq, both companies will be able to offer
more compelling Internet services and solutions to small and medium
businesses as well as large enterprises. The alliance will lead
Internet innovation in the PC market by capitalizing on Compaq's
consumer PC leadership position and CMGI's network of leading Internet
destinations and enabling technologies.
The two companies are moving quickly to take advantage of key business
and integration opportunities made possible by the alliance. Recent
examples include:
-- Raging Bull (TM), an "at"Ventures company and the Web's most
innovative and dynamic financial community, recently entered a
strategic alliance with AltaVista to connect AltaVista Finance
users with Raging Bull's established network of more than 220,000
investors to provide a rich resource for financial information
-- Compaq and Engage Technologies, Inc (Nasdaq:ENGA) a provider of
profile driven Internet marketing solutions and majority-owned
subsidiary of CMGI, recently entered a far-reaching partnership
to deliver Internet-related marketing services to Compaq's
customers worldwide. Compaq will deploy Engage Precision
Profiling and Accipiter AdManager technology to enhance Compaq's
Internet-based marketing initiatives, including providing
individually tailored relationships for Compaq customers, and
provide additional products and services to customers. In
addition, Compaq has made an investment in Engage.
-- Compaq and Ancestry.com, Inc., the "at"Venture affiliate premier
online resource for connecting and strengthening families,
recently entered a joint initiative designed to broaden
e-commerce opportunities for both companies. The alliance will
make Compaq the premier PC vendor on the MyFamily.com and
Ancestry.com Web sites and allow Ancestry.com, Inc. to broaden
its member base through joint marketing programs. A co-branded
Web page will be created linking Ancestry.com and MyFamily.com
with Compaq.com.
-- Compaq will expand its leadership in delivering Internet
innovation by expanding the built-in Internet keyboard
capabilities across all end-user product lines and by leveraging
CMGI Web destinations including AltaVista.
CMGI has begun a comprehensive integration review with AltaVista and
expects to announce a series of CMGI related integration deals over the
coming months. In addition, CMGI will collaborate with Compaq's
world-class research labs and business groups to develop innovative
Internet technologies and next generation Internet appliances. This
collaboration will include continued development of advanced search
technologies for AltaVista.
Through the transaction, Compaq transferred 83.0 percent equity
ownership in AltaVista to CMGI. Compaq retained 17.0 percent equity
ownership in AltaVista and continues to hold a Board seat. In return,
Compaq received 19.0 million CMGI common shares, CMGI preferred shares
equivalent to 1.8 million CMGI common shares and a $220 million
three-year note to Compaq. Compaq also is taking a seat on the CMGI
Board of Directors and plans to announce its nominee for this new
position shortly.
Compaq Background
Compaq Computer Corporation, a Fortune Global 100 company, is the
second-largest computer company in the world and the largest global
supplier of computer systems. Compaq develops and markets hardware,
software, solutions, and services, including industry-leading
enterprise computing solutions, fault-tolerant business-critical
solutions, enterprise and network storage solutions, commercial desktop
and portable products and consumer PCs. The Company is an industry
leader in environmentally friendly programs and business practices.
Compaq products are sold and supported in more than 100 countries
through a network of authorized Compaq marketing partners. Customer
support and information about Compaq and its products are available at
compaq.com.
CMGI Background
A recognized leader in the Internet economy, CMGI, Inc. (Nasdaq:CMGI)
has built a substantial base of Internet operating companies and,
through its "at"Ventures affiliates, has invested in a growing
portfolio of synergistic Internet enterprises which enhance the value
of its core holdings. This unique method of generating equity for its
shareholders is what CMGI calls "creating net value." Microsoft, Intel
and Sumitomo hold minority positions in CMGI.
CMGI's majority-owned subsidiaries include Engage (Nasdaq:ENGA),
Activerse, Adsmart, iCast, Magnitude Network, NaviSite, NaviNet, Planet
Direct and ZineZone. The company's "at"Ventures affiliates have
ownership interests in Lycos, Inc. (Nasdaq:LCOS), Critical Path
(Nasdaq:CPTH), Silknet (Nasdaq:SILK), Chemdex (Nasdaq:CMDX),
Advoco.com, Ancestry.com, Asimba, AuctionWatch, Aureate Media, blaxxun,
BizBuyer.com, buyingedge.com, CarParts.com, eCircles.com,
Furniture.com, HotLinks, KOZ.com, MotherNature.com, NextMonet.com,
NextPlanetOver.com, OneCore.com, ONElist, Productopia, Promedix.com,
Raging Bull, Softway Systems, Speech Machines, ThingWorld.com,
Universal Learning Technology, Vicinity, Virtual Ink and Visto.
CMGI is also the majority-owner of SalesLink, InSolutions and On-Demand
Solutions, leaders in direct marketing, fulfillment and turnkey arenas.
CMGI Corporate headquarters is located at 100 Brickstone Square,
Andover, MA 01810. Telephone: 978-684-3600. Fax: 978-684-3814.
Additional information is available on the company's Web site at
cmgi.com.
AltaVista Background
AltaVista Company is the premier online media and commerce network.
The company integrates unique Internet technology and services to
deliver relevant results faster for both individuals and Web-based
businesses. By combining distinctive AltaVista brand services with
"best of the Web relationships," the AltaVista Network creates the most
satisfying Internet experience.
AltaVista is building on its heritage of technology and innovation
leadership, offering award-winning services including: My AltaVista,
AltaVista Finance, The AltaVista MicroPortal/FreeAccess service
(http://www.microav.com), AltaVista Search, AltaVista Local Portal
Services, and AltaVista's Shopping.com. For more information, visit
AltaVista at altavista.com.
This release contains forward-looking statements based on current
expectations that involve a number of risks and uncertainties. The
potential risks and uncertainties that could cause actual results to
differ materially include the failure of systems associated with order
fulfillment, the failure to close certain sales contemplated prior to
the end of the third quarter 1999; changes in product mix; inventory
risks due to shifts in market demand; continued competitive factors and
pricing pressures; and market responses to pricing actions and
promotional programs. Further information on the factors that could
affect Compaq's financial results are included in its SEC filings,
including the annual report on Form 10-K for the year ended December
31, 1998, and the quarterly report on Form 10-Q for the quarter ended
June 30, 1999. Compaq, Registered U.S. Patent and Trademark Office.
Product names mentioned herein may be trademarks and/or registered
trademarks of their respective companies. Forward looking statements
made by CMGI in this release are made pursuant to the safe harbor
provisions of the Private Securities Litigation Act. Investors are
cautioned that actual results could differ materially from those
anticipated by such statements and are advised to consult CMGI's
current SEC filings for additional information concerning risk factors
that affect the Company's business.
NOTE TO EDITORS: The word "at" before the company "at"Ventures stands
for the "at"symbol.
Copyright (C) 1999 Business Wire. All rights reserved.
-0-
CONTACT: Compaq Computer Corporation
Alan Hodel, 281/518-8932
alan.hodel@compaq.com
or
CMGI
Diedre Moore, 978/684-3655
dmoore@cmgi.com
or
Investors:
Compaq
281/514-9549 or 800/433-2391
investor.relations@compaq.com
or
CMGI
Catherine Taylor, 978/684-3540
ctaylor@cmgi.com
WEB PAGE: businesswire.com
GEOGRAPHY: TEXAS
INDUSTRY CODE: COMED
COMPUTERS/ELECTRONICS
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