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Gateway to Buy Stake in CMGI

May 14, 1999|Bloomberg News

Gateway Inc., the No. 2 direct seller of personal computers, said it will buy a stake in Internet venture fund CMGI Inc. for $200 million, forming an alliance that will enhance Gateway's online products. The companies will seek joint investment opportunities on the Internet and treat each other as preferred vendors, CMGI said. Gateway, which sells PCs to consumers online, by telephone and at its Gateway Country stores, said it will combine some of its products and services with CMGI's Internet companies. Gateway had $7.47 billion in 1998 sales, while CMGI had $91.5 million. Additional details weren't disclosed. Neither Gateway nor CMGI officials were available for comment. CMGI's network of companies includes Activerse, Adsmart, Engage Technologies Inc., Icast, Planet Direct, NaviNet, NaviSite, Magnitude Network and ZineZone. Shares of San Diego-based Gateway fell 56 cents to close at $67.63 on the New York Stock Exchange, while shares of Andover, Mass.-based CMGI fell $1.69 to close at $238.06 on Nasdaq.

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