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

To: TokyoMex who wrote (2538)	11/4/1998 5:44:00 PM
From: Scarecrow	Read Replies (3) \| Respond to of 19700

Today was another one of those classic CMGI days. While all us longs take a (well-deserved) sip of bubbly, consider the following news on LinkExchange. I can't believe they got $250 million. MSFT looks like they're moving aggressively toward the portal market (almost a rebirthing of MSN as a portal?). In between sips, would someone care to venture a guess as to the impact of this announcement on CMGI? ------------------------- November 4, 1998 Microsoft to Buy LinkExchange For About $250 Million in Stock By NICK WINGFIELD THE WALL STREET JOURNAL INTERACTIVE EDITION In a further refinement of its online media efforts, Microsoft Corp. plans to acquire LinkExchange Inc., a closely held Internet-advertising firm, in a stock deal valued at about $250 million, according to people familiar with the matter. LinkExchange, San Francisco, has become one of the best-known Internet-advertising networks, a class of new-media firms that sell banner promotions on a fleet of far-flung Web sites in order to reach the largest possible audience. LinkExchange alone places ad banners on about 400,000 Web sites, though many of those sites are obscure personal home pages, not large commercial sites. While that makes for a fragmented audience, it's also a large one: For September, measurement firm RelevantKnowledge Inc. reported that LinkExchange's sites reached more than 22 million unique Web surfers, or 42% of the Web audience. That's a greater reach than competitors DoubleClick Inc., 24/7 Media Inc. and others enjoy. LinkExchange will be integrated into the Redmond, Wash., software giant's Microsoft Network, or MSN, group. The move to acquire LinkExchange could give Microsoft a much stronger position in online media, where it has been working to overhaul earlier stabs at Web publishing. The company has jettisoned plans to create entertainment-oriented sites in favor of Web services like its Expedia online travel agency, CarPoint automobile catalog and HotMail, a free e-mail offering, and has opted to group them under the MSN brand name. That strategy is increasingly pitting Microsoft against more established Web portals such as Yahoo! Inc. and Excite Inc. Earlier this year, Excite acquired another Internet-advertising network, MatchLogic Inc., in a stock deal valued at $89 million. LinkExchange, founded in 1996, has taken a unique approach that has allowed it to grow its network of sites very quickly. The company allows member Web sites to advertise for free on other sites throughout the LinkExchange network -- provided they agree to return the favor. LinkExchange then makes money by selling a chunk of the ad space on its member sites to paying sponsors, including Procter & Gamble Co., AMR Corp.'s American Airlines and Microsoft itself. According to one person familiar with the deal, LinkExchange could also give Microsoft advertising access to a new crop of small and medium-sized Web pages.