CMGI Reportedly in Talks to Buy Altavista.
CMGI Inc is said to be in talks to buy the internet properties
Altavista, Zip2.com and Shopping.com from Compaq Computer Corp for $2 to
$3bn in stock. The Wall Street Journal said a deal could be reached by
Thursday. Still struggling to digest Digital Equipment Corp, Compaq has
warned investors and analysts to expect losses this quarter and more
layoffs to come. Managers might feel that divestment of non-core
businesses may help the company regain its balance. As for CMGI,
internet properties are its bread and butter. It already has an 18%
stake in Lycos Inc, the number two web portal behind Yahoo Inc.
Catherine Taylor of CMGI Investor Relations refused to speculate on
market rumors, while Altavista could not be reached for comment.