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To: flyeguy99 who wrote (1316)	8/23/2000 5:11:16 PM
From: S.C. Barnard	Respond to of 100058

OT from RB Enga board on CMGI CMGI readies plans to consolidate operations WEDNESDAY, AUGUST 23, 2000 3:24:00 PM EST By Tim McLaughlin BOSTON, Aug 23 (Reuters) - Stiff-armed by Wall Street investors, CMGI CMGI huddled with the New England Patriots in a stadium naming deal on Wednesday to bolster the brand name of its roster of Internet companies. Like the once Super Bowl contending Patriots, CMGI is working to recapture past glory. It plans to merge some of its 17 majority-owned companies to cut costs and accelerate their path toward operating profitability, according to the company's head of corporate development. Andover, Mass.-based CMGI, a leading Internet investor and operator, also is considering shedding some of its assets, CMGI President Dave Andonian told Reuters. He said more details will be released during the company's conference call with analysts on Sept. 22. "It may even mean shedding some businesses, which we've never done before," Andonian said. "We haven't ever sold a majority-owned or wholly-owned company before." Andonian made his remarks after CMGI and the New England Patriots unveiled a naming rights and sponsorship agreement for the football team's new $325 million stadium. The 15-year agreement is just the beginning of a CMGI initiative to build its brand name in the face of a sagging stock price. During its 2001 fiscal year, CMGI Chairman David Wetherell said. the company plans to spend up to $400 million on advertising and marketing to build a corporate identity. "Should we have invested in our brand earlier?" Wetherell responded during a press conference with the Patriots. "Perhaps, but I don't think it would have changed the vagaries of the stock market. We had nothing to do with the way (our stock) went up." CMGI's stock moved up 4 to 41-3/4on the Nasdaq. But that's well below its 52-week high of 163-8/16. "It was kind of hard to go up from that," Wetherell said. "I feel very confident in the position of our company. Andonian said combining CMGI majority-owned Web hosting and infrastructure companies, for example, would make their operations more efficient and competitive. CMGI already has combined six Internet marketing companies under the corporate banner of Engage Technologies Inc ENGA. "And we think the industry is consolidating in certain areas that we can combine some of these assets rather than having each one seeing their own liquidity event," Andonian said, in a reference to possible initial public offerings or sales of businesses. CMGI stock skyrocketed during the 1990s and earlier this year as Wall Street rewarded its ability to pick the Internet's early winners such as Lycos Inc. LCOS and Yahoo! Inc. YHOO. "They've made a lot of great investments," said Vik Mehta, an Internet analyst at Goldman Sachs & Co. "Now they're making sure their investments lead to good companies over time." CMGI's success with investing and taking start-ups public overshadowed its roots as an operating company, Andonian said. "Our roots have always been as an operating business, but we just weren't getting credit," Andonian said. "But we didn't mind because of the run-up in the stock."