Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Premier who wrote (508)	5/22/1998 9:46:00 PM
From: Nick	Read Replies (1) \| Respond to of 19700

CMG ends share buyback, cites merger rules ANDOVER, Mass., May 22 (Reuters) - CMG Information Services Inc, a publicly traded Internet venture capital firm, said Friday it rescinded its existing share buyback plan, citing uncertainty over the plan's affect on accounting for mergers. In a statement, the company said its board had ended a share buyback program announced in the fall of 1996 under which the company had bought back 200,000 shares, or 20 percent of the shares authorized under the plan. The figures reflect CMG's two-for-one stock split that took effect earlier in May. ''The decision to rescind this program was a result of uncertainties regarding the Securities and Exchange Commission's interpretation of Staff Accounting Bulletin 96 (SAB 96),'' CFO Andrew Hajducky said in the statement. In addition, the program was terminated because CMG has not repurchased any shares in the past twelve months, he said. The possible new interpretation by U.S. regulators of accounting rules raises the possibility that companies with ongoing stock repurchase programs will not be able to account for mergers using the pooling-of-interest accounting method. This method of accounting allows companies to combine into one without requiring the merged company to pay potentially hefty taxes on the transaction. ''We believe that continuing the program could restrict our ability to pursue the full range of strategic business development opportunities in which the company may engage to further enhance our market position,'' Hajducky said. CMG holds significant stakes in Lycos (LCOS - news) GeoCities, and Tripod among other popular Internet companies. CMG has made several such acquisitions in recent years, including Internet advertising company Accipter Inc. for $35 million in March.