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CMGI unravel continues

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ComputerWire: IT Industry Intelligence

CMGI Inc's former dot-com empire continued to unravel yesterday, with the announcement that Engage Inc's internet ad delivery unit has been bought out by its founding management team.

The unit, which provides advertising systems to the likes of Microsoft and Travelocity, will be named Accipiter Solutions Inc, after the original company that was bought by CMGI and merged with Engage in 1998, two years after its inception.

"The deal will enable Engage to devote singular focus to its core advertising, marketing and promotion solutions business," Engage said. The firm has received a warrant to purchase up to 10% of Accipiter common stock.

Engage was formed by the merger of a number of internet advertising companies that CMGI acquired. CMGI divested Engage in September, retiring its debt and securities held in exchange for a payout in cash and warrants for 9.9% of the firm.

© ComputerWire

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