To: Jenne who wrote (5919 ) 3/12/1999 10:22:00 PM From: George Martin Respond to
Jenne-
Thanks for article on CC and reaction. Enjoy & appreciate your posts on several SI boards. FWIW, there were several posts last night referring to CC issues, LYCOS, and split decision: 5795 -- 5802 -- 5805. BTW the CC is definitely worth listening to for anyone who's interested:
CALL IN UNTIL MIDNIGHT TONIGT to listen to replay: 800 475-6701 , code 437569 or
GO TO CMGi INVESTOR RELATIONS webpage (also worth the visit) and listen to replay with RealPlayer.
About the NO SPLIT DECISION:
When asked about the split in the CC, DW mentioned at one point that they did not want to "manipulate or control"
the stock price. I thought at the time and wrote in an earlier post, well maybe we should respect DW's restraint and discipline in holding back, plus obviousl also the uncertainty of the Lycos situation and how that might play out vis-a-vis the need for 'stock currency.' However, TODAY'S ARTICLE IN THE WSJ ABOUT DILLER AND WETHERELL -- A MUST READ ANY CMGI INVESTOR-- casts some new light on this.
In the article Diller accuses DW of attempting to manipulate and inflate CMGI's stock price by opposing the USAI Lycos deal. Pretty strong quotes on both sides, highlighting 'new media' vs. 'old media' with DW being quoted that 'old media' needs Lycos more than Lycos needs old media. This is the same term DW used in the CC. Looks to me like these accusations by Diller put DW in a defensive position and maybe played some small part in the 'no split' decision. Historically, CMGI announced split the last two times -- 5/98 and 1/98 -- when it was I believe in or around 90 both times so one would think a split announcement at twice that level would be no brainer. Again, as others have noted, Lycos situation would be an understandable reason for some delay.
ALSO, news about selection for NASDAQ is great. Article about @ Ventures IV with international scope sounds very promising too !
Thanks and good luck --
George Martin
