CMGI and New England Patriots Agree to Revise Sponsorship Agreement.Business Editors ANDOVER, Mass.--(BUSINESS WIRE)--Aug. 5, 2002 CMGI CMGI Commonly Maintained Grounds Infrastructures CMGI College Marketing Group Information (Services) , Inc. (Nasdaq: CMGI) today announced that it has agreed with the owner of the New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. Patriots' stadium to amend the 15-year sponsorship agreement entered into in August 2000. Under the terms of the original sponsorship agreement, CMGI was to pay $7.6 million per year for 15 years, in exchange for a comprehensive collection of sponsorship and promotional rights associated with the stadium, which has been known as CMGI Field. Under the terms of the amended agreement announced today, CMGI will relinquish immediately the stadium naming rights Naming rights are the right to name a piece of property, either tangible property or an event, usually granted in exchange for financial considerations. Institutions like schools, places of worship and hospitals have a tradition of granting donors the right to name facilities in and retain more limited marketing rights in exchange for a series of payments of $1.6 million per year beginning in 2003 and ending in 2015. "There are two primary factors in the decision announced today. First, CMGI's business, and indeed the business climate for technology companies overall, has seen drastic changes in the two years since we announced our original agreement with the Patriots. In response to these changes, CMGI continues to undergo a significant restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of its business, and is now focused on paring its network of operating companies operating company A business that engages in transactions with outsiders. to a smaller, core group that can achieve profitability and market leadership. Second, given the larger market challenges and our ongoing restructuring, we are focusing our corporate spending on uses that will help build our business moving forward, such as our recent acquisition of iLogistix. We believe that these revisions of the sponsorship agreement, which will reduce our ongoing commitment to the Patriots by approximately $86.0 million, will better position CMGI for future success, and therefore are appropriate at this time," said George A. McMillan, President and Chief Executive Officer of CMGI. CMGI expects to incur a charge of approximately $21.0 million in the quarter ended July 31, 2002 related to the future payments under the amended agreement announced today. About CMGI and @Ventures CMGI, Inc. (Nasdaq: CMGI) is comprised of CMGI operating businesses and investments made through its venture capital affiliate, @Ventures. CMGI companies span a range of vertical market segments including e-business and fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. ; enterprise software and services; and managed application services See ASP and Web services. . CMGI's nine operating companies include Engage (Nasdaq: ENGA), NaviSite (Nasdaq: NAVI NAVI Nuclear Arms Verification Instrument NAVI New Analog Video Interface ), AltaVista, Equilibrium, ProvisionSoft, SalesLink, Tallan, uBid and Yesmail. CMGI's corporate headquarters is located at 100 Brickstone Square, Andover, MA 01810. @Ventures has offices there, as well as at 3000 Alpine Road, Menlo Park Menlo Park. 1 Residential city (1990 pop. 28,040), San Mateo co., W Calif.; inc. 1874. Electronic equipment and aerospace products are manufactured in the city. Menlo College and a Stanford Univ. research institute are there. 2 Uninc. , CA 94028. For additional information, see http://www.cmgi.com and http://www.ventures.com. This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. which address a variety of subjects including, for example, the expected effects of the amendment of the sponsorship agreement on CMGI's financial condition and results of operations and the expected benefits of CMGI's continuing restructuring efforts. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: CMGI's success is dependent upon its ability to integrate its operating companies in accordance with its business strategy; CMGI's success, including its ability to decrease its cash burn rate, improve its cash position, grow its businesses and revenues and reach profitability, depends on its ability to execute on its business strategy and the continued and increased demand for and market acceptance of CMGI's and its operating companies' products, services and web sites and the Internet in general; CMGI may experience difficulties integrating technologies, operations and personnel in accordance with its business strategy; and increased competition and technological changes in the markets in which CMGI competes. For detailed information about factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to CMGI's filings with the Securities and Exchange Commission, including CMGI's most recent Quarterly Report on Form 10-Q Form 10-Q See 10-Q. . Forward-looking statements represent management's current expectations and are inherently uncertain. We do not undertake any obligation to update forward-looking statements made by us. |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion