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Internet services

Compaq and CMGI Announce Strategic Partnership

Strategic Insights

— 1 min read

Compaq Computer Corporation and CMGI, Inc. announced a comprehensive strategic alliance aimed at aggressively pursuing cooperative Internet-related business and market opportunities. As part of this agreement, CMGI acquired a majority stake in AltaVista, with Compaq becoming the largest outside shareholder in CMGI. This partnership is designed to provide the best Internet services and solutions to businesses and consumers.

Key Takeaways:

  • Compaq holds 17.0% equity ownership in AltaVista, with CMGI retaining 83.0% equity ownership.
  • Compaq received 19.0 million CMGI common shares, CMGI preferred shares equivalent to 1.8 million CMGI common shares, and a $220 million three-year note from CMGI.
  • Compaq will expand its leadership in delivering Internet innovation by expanding the built-in Internet keyboard capabilities across all end-user product lines.
  • The partnership involves the integration and build-out of AltaVista, with CMGI expecting to announce a series of CMGI-related integration deals over the coming months.
  • Compaq will leverage CMGI's network of leading Internet destinations and enabling technologies to enhance its Internet-related business and market opportunities.
  • The partnership will lead Internet innovation in the PC market by capitalizing on Compaq's consumer PC leadership position and CMGI's network of leading Internet destinations and enabling technologies.

Statistics:

  • Compaq transferred 83.0% equity ownership in AltaVista to CMGI.
  • Compaq retained 17.0% equity ownership in AltaVista and continues to hold a Board seat.
  • Compaq received 19.0 million CMGI common shares and CMGI preferred shares equivalent to 1.8 million CMGI common shares.
  • Compaq will issue a $220 million three-year note to CMGI.

Sources:

  • Businesswire, August 19, 1999
  • Compaq Background
  • CMGI Background
  • AltaVista Background

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