Gateway and CMGI Form Strategic Alliance Gateway to Invest $200 Million for Ownership Stake In CMGI
BUSINESS WIRE - May 13, 1999 07:50
SAN DIEGO, CA. & ANDOVER, MASS. (May 13) BUSINESS WIRE -May 13, 1999-- Gateway (NYSE: GTW), a leading provider of complete technology personalization and CMGI, Inc. (NASDAQ: CMGI), a leading diversified Internet operating company, today announced that the two companies have formed a strategic alliance and will seek out collaborative business and investment opportunities on the Internet. In addition, Gateway has agreed to invest $200 million for an ownership stake in CMGI, subject to certain customary terms and conditions.
The strategic alliance will enhance Gateway's Internet and e-commerce initiatives and provide additional products and services to Gateway clients. Gateway will integrate various products and services within CMGI's growing network of Internet companies. In addition, CMGI and Gateway will treat each other as a preferred vendor. The two companies will also explore business opportunities with CMGI's majority-owned companies, including Activerse, Adsmart, Engage Technologies, ICast, Planet Direct, NaviNet, NaviSite, Magnitude Network and ZineZone.
Commenting on the deal, David Wetherell, CMGI's Chairman and CEO said, "Gateway's vision and leadership in the PC market is a natural complement to our leadership in the Internet arena. Similarly, our expertise in interactive marketing, infrastructure and community building support Gateway's goals to increase their market share in both the consumer and business arenas."
Ted Waitt, Gateway's Chairman and CEO said, "Gateway and CMGI share a common vision of the future of the Internet. It's about providing strong content, building relationships and a sense of community with our clients and using the Internet as a powerful vehicle for marketing products and services. We intend to collaborate on a range of opportunities, including site development and interactive marketing solutions. The new gateway.com site, our gateway.netSM Internet access service, SpotShop.comSM online sales, and now our alliance with CMGI, all serve to solidify our position as a major Internet player." About Gateway
Gateway (NYSE: GTW), a Fortune 250 company founded in 1985, focuses on building lifelong relationships with consumers and businesses through complete technology personalization. Gateway ranked number one in U.S. consumer desktop PC sales in the fourth quarter of 1998(1). Our 19,000 employees worldwide serve clients with services and built-to-order computers that consistently win top awards from leading industry publications. Gateway had total global revenue of $7.5 billion in 1998 and shipped 3.54 million systems. For more information, visit our Web site at www.gateway.com About CMGI
A recognized leader in the Internet economy, CMGI (Nasdaq: CMGI) has built a substantial base of Internet operating companies and, through its @Ventures affiliates, has invested in a growing series of synergistic Internet enterprises which enhance the value of its core holdings. This unique method of generating equity for its shareholders is what CMGI calls "creating net value." Microsoft, Intel and Sumitomo hold minority positions in CMGI.
CMGI's majority-owned subsidiaries include Activerse, Adsmart, Engage, ICast, Magnitude Network, NaviSite, NaviNet, Planet Direct and ZineZone. The Company's @Ventures affiliates have ownership interests in Lycos, Inc. (Nasdaq: LCOS), GeoCities (Nasdaq: GCTY), Critical Path (Nasdaq: CPTH), Silknet (Nasdaq: SILK), Ancestry.com, Asimba, blaxxun, CarParts.com, Chemdex, eCircles.com, Furniture.com, HotLinks, KOZ.com, Medical Village, MotherNature.com, NextMonet.com, OneCore Financial Network, Raging Bull, Softway Systems, Speech Machines, ThingWorld.com, TicketsLive, Universal Learning Technology, Vicinity, Virtual Ink and Visto.
CMGI is also the majority-owner of CMG Direct, SalesLink, InSolutions and On-Demand Solutions, leaders in the direct marketing, fulfillment and turnkey arenas. CMGI Corporate headquarters is located at 100 Brickstone Square, Andover, MA 01810. Telephone: 978-684-3600. Fax: 978-684-3814. Additional information is available on the company's Web site cmgi.com 1. According to Gartner Group/Dataquest US PC Quarterly statistics.
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CONTACT: Deidre Moore Dave Boxum CMGI Gateway
(978) 684-3655 (605) 232-1894 dmoore@cmgi.com dave.boxum@gateway.com
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