CMGI Shares Soar on Talk of New Suitors for Lycos

Computergram International, March 16, 1999

Shares in internet investment company CMGI Inc soared on Monday amid optimism that a better deal would be found for 18.5%-owned Lycos Inc. CMGI jumped $28.625, or 17.45%, to close at $192.625. Lycos also gained ground, rising $7.125 to close at $105.75. CMGI Managing Director Peter Mills said at the PaineWebber internet conference in New York that there were indeed other parties interested in acquiring Lycos, but declined to identify them.

Since souring on the idea of the proposed Lycos merger with USA Networks Inc, CMGI has hired investment bank Morgan Stanley Dean Witter & Co to find another suitor. USA Networks chief executive Barry Diller, meanwhile, charged on CNBC that talking about potential suitors without disclosing any tangible bid is essentially stock manipulation on the part of CMGI. Diller asserts that if a better offer for Lycos is put forward, USA Networks will either sweeten its own offer or back off. Separately, Nasdaq-Amex Inc said that CMGI will replace Netscape Communications Corp, which is being acquired by America Online Inc, in the Nasdaq 100 Index, as of the close of trading on March 17.