Printer Friendly
The Free Library
23,396,934 articles and books


CMG announces venture dividend program and first venture stock dividend.

ANDOVER, Mass.--(BUSINESS WIRE)--May 28, 1997--CMG Information Services, Inc. (NASDAQ:CMGI) today announced a new venture dividend program in connection with its CMG@Ventures Internet investments and also announced the first dividend of venture investment stock under the program. CMG plans to dividend one share of Lycos, Inc. (NASDAQ:LCOS) common stock on July 31, 1997 for every sixteen shares of CMG stock held by shareholders of record on June 5, 1997. Cash will be distributed in lieu of fractional shares of Lycos on a proportional basis based on the closing price of Lycos stock on June 5, 1997.

Additional information regarding Lycos is available from Lycos Investor Relations or from Lycos' web site at http:www.Lycos.com .

CMG@Ventures has invested a total of $3.7 million in Lycos, beginning in June, 1995, and holds approximately 59% of Lycos' total outstanding shares. The declaration of the distribution of the Lycos stock will result in the recognition of a one time gain in CMG's fourth quarter ended July 31, 1997, and is not expected to reduce the Company's ownership percentage in Lycos below 50% upon distribution.

The Lycos stock being dividended is freely tradable. The tax consequences for CMG shareholders of the dividend of Lycos stock will vary, and CMG assumes no liabilities for those tax consequences. Shareholders are urged to consult their own tax advisors.

As part of the Company's initiative to increase shareholder value, the venture dividend program is intended to share with CMG shareholders the financial benefits from the success of its CMG@Ventures Internet investments. Subject to restrictions on transfer, the program envisions distributing up to 10% of the stock held by CMG@Ventures following an initial public offering by one of the companies in which it holds an investment. CMG may also announce from time to time other stock dividends in connection with its Internet investments. In the future the date of record for such dividends will be the date of the announcement. Such dividends are subject to approval of CMG's Board of Directors and subject to holding requirements by regulatory agencies such as the SEC. As with any dividend program, it may be altered or discontinued at the discretion of the Company.

CMG Chairman and CEO, David S. Wetherell, commented, "We are extremely pleased to share the success of CMG@Ventures in this way with our shareholders. Lycos is a proven leader in the search engine space, and the company's fundamentals have never been stronger. We look forward to many such distributions in the future, as other investments in the CMG@Ventures portfolio come to fruition."

CMG Information Services, Inc. is a leading provider of direct marketing services, investing in and integrating advanced Internet, interactive media and database technologies. CMG@Ventures currently holds investments in nine companies, including Blaxxun Interactive, Inc., GeoCities, Ikonic Interactive, Inc., KOZ Inc., Lycos, Inc., Parable, LLC, Premiere Technologies, Inc., Silknet Software, Inc. and Vicinity Corporation.

Forward looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Act. Investors are cautioned that actual results could differ materially from those anticipated by such statements and are advised to consult CMG's current SEC filings for additional information concerning risk factors that affect the Company's business.

CONTACT: CMG Information Services

Andrew J. Hajducky III, (508) 684-3660
COPYRIGHT 1997 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1997, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:May 28, 1997
Words:553
Previous Article:Imperial Metals Reports First Quarter Financial Results for the Three Months Ended March 31, 1997.
Next Article:Teche Holding Company Declares Dividend.
Topics:



Related Articles
CMG reports first quarter fiscal 1997 operating results; Sales increase 82 percent.
CMG Information Services agrees to sell NetCarta to Microsoft for $20 million.
CMG reports third quarter financial results April 30, 1997.
CMG Reports Significant Increase in Sales for Fiscal Year 1997/ Part 1 of 2.
CMG Reports Second Quarter Financial Results.
CMG oVentures Strategy Confirmed as GeoCities Goes Public.
CMGI Declares Two-For-One Stock Split.
CMGI Announces Third Quarter Financial Results; Revenues Increase 141% Compared with Prior Year Third Quarter.
CMGI Announces Record First Quarter Revenues of $123.7 Million Internet Segment Revenues Grow 1,633% over Prior Year First Quarter and 352% over...
Granulator supplier broadens its range. (Auxiliaries).

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters