well, NEWS
CMGI and PRIMEDIA Announce Strategic Alliance --
New Alliance to Include Equity Exchange Between the
Two Companies
Alliance to Accelerate PRIMEDIA's Internet Initiatives, Leverage
Investment and Development Strength of CMGI Network to Fuel Growth in Key B2B and B2C
Verticals
ANDOVER, Mass. & NEW YORK--(BUSINESS WIRE)--March 30, 2000-- David Wetherell, chairman and CEO of CMGI,
Inc. (NASDAQ: CMGI - news) and Tom Rogers, chairman and CEO of PRIMEDIA (NYSE: PRM - news) today announced the
formation of a strategic alliance that is intended to leverage each company's respective expertise in Internet investment and
development and deep vertical industry content to fund and develop a series of new Web ventures. As part of the alliance, CMGI
will acquire approximately 5 percent of PRIMEDIA (8 million PRIMEDIA shares) in exchange for 1.53 million shares of CMGI.
CMGI is the world's largest and most diverse network of Internet companies, including more than 65 leading Internet businesses
spanning online marketing, content and community, infrastructure and e-commerce disciplines. PRIMEDIA is a leading targeted
media company and the publisher of more than 250 magazine titles, 232 business and consumer information products, a variety of
video businesses, and more than 200 Web sites.
In addition to the initial share exchange, the new online companies, to be jointly created and funded by CMGI and PRIMEDIA, are
expected to include participation from CMGI @Ventures, CMGI's affiliated venture capital arm, and vertical-specific content and
intellectual property investments from PRIMEDIA. In addition, it is intended that each vertical venture will access and leverage the
growing stable of CMGI-related products and services including companies such as MyWay.com, Engage, 1stUp.com, and
NaviSite to help drive traffic, fuel monetization and provide access and hosting capabilities.
Under the agreement, CMGI and PRIMEDIA will jointly identify key vertical areas, spanning both business-to-consumer (B2C)
and business-to-business (B2B) categories, such as agribusiness, digital entertainment, electrical/construction and
telecommunications, for these new companies. The B2B ventures will cover vertical online communities being developed by
PRIMEDIA's IndustryClick, the company's B2B portal.
``For several months now, CMGI and PRIMEDIA have been crossing paths through our various operating and venture capital
businesses, and I've come to appreciate the incredible array of vertical content assets within PRIMEDIA, both in the B2B and B2C
spaces,' said Wetherell. ``PRIMEDIA is a company from which an enormous amount of new media value can be created, and
through the application of our Internet expertise and various network services I'm confident that both companies can reap
tremendous benefits. Since joining last Fall, Tom Rogers has gotten the company off to a fast start as a new media player and I look
forward to exploring additional ways for our companies to create value together in the future.'
``Dave Wetherell's accomplishments with CMGI speak for themselves,' said Rogers. ``CMGI's combination of online operating
expertise and investment skill provide a basis for a unique strategic collaboration between our two companies. I am confident that
this relationship will be a great catalyst for PRIMEDIA's growth. This is a wonderful validation of PRIMEDIA's present asset base
and our new media future for which we are very proud.'
About PRIMEDIA
PRIMEDIA Inc. is a targeted media company, reaching consumer and business-to-business audiences through print, Internet, live
events, video and radio. Some key consumer brands include Seventeen, New York, Chicago, Fly Fisherman, Channel One
Network, Horticulture, Modern Bride and American Baby and some key business-to-business brands include IntelliChoice,
Telephony, Ward's, PROMO, SIMBA and American Demographics. Some of its more than 200 Internet sites include
Seventeen.com, Mediacentral.com, Apartmentguide.com and Modernbride.com
About CMGI and CMGI @Ventures
With more than 65 companies, CMGI, Inc. (Nasdaq: CMGI - news) represents the largest, most diverse network of Internet
businesses in the world, including both CMGI operating companies and synergistic investments made through its venture capital
affiliate, CMGI @Ventures. CMGI leverages the technologies; content and market reach of its extended family of companies to
foster rapid growth and industry leadership across its network and the larger Internet Economy. Compaq, Intel, Microsoft, Pacific
Century CyberWorks and Sumitomo hold minority positions in CMGI.
CMGI's majority-owned operating companies include Engage Technologies (Nasdaq: ENGA - news), NaviSite (Nasdaq: NAVI -
news), 1ClickBrands, 1stUp.com, Activate.net, AdForce, Adsmart, AltaVista, CMGI Solutions, Equilibrium, Flycast, iCAST,
MyWay.com, NaviNet, SalesLink, Tribal Voice and yesmail.com. CMGI @Ventures has ownership interests in 48 Internet
companies, including Lycos, Inc. (Nasdaq: LCOS - news), Critical Path (Nasdaq: CPTH - news), Silknet (Nasdaq: SILK - news),
MotherNature.com (Nasdaq: MTHR - news), Ventro (Nasdaq: VNTR - news) and Vicinity (Nasdaq: VCNT - news).
CMGI's corporate headquarters is at 100 Brickstone Square, Andover, MA 01810, Tel: 978-684-3600. CMGI @Ventures has
offices there as well as at 3000 Alpine Road, Menlo Park, CA 94028. For additional information and a full listing of the CMGI and
CMGI @Ventures companies, see cmgi.com and ventures.com
This release contains forward-looking statements based on current expectations or beliefs, as well as a number of assumptions
about future events, and these statements are subject to important factors and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements. For a detailed discussion of these and other cautionary
statements, please refer to CMGI's filings with the Securities and Exchange Commission, including CMGI's Annual Report on Form
10-K for the most recently ended fiscal year.
This release contains certain forward-looking statements concerning PRIMEDIA's operations, economic performance and financial
condition. These statements are based upon a number of assumptions and estimates which are inherently subject to uncertainties and
contingencies, many of which are beyond the control of the Company, and reflect future business decisions which are subject to
change. Some of these assumptions may not materialize, and unanticipated events will occur which can affect the Company's results.
Contact:
PRIMEDIA Investor Relations:
Warren Bimblick
212.745.0615
wbimblick@primediainc.com
OR
CMGI Public Relations:
Deidre Moore
978.684.3655
dmoore@cmgi.com
OR
CMGI Investor Relations:
Catherine Taylor
978.684.3540
ctaylor@cmgi.com |
