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CMGI wobbles on tech table
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March 9, 1999: 5:02 p.m. ET
Internet venture player spikes, then dips, after CEO resigns from the Lycos board
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NEW YORK (CNNfn) - The disgruntled defection of a board member at Lycos led to head-scratching among investors Tuesday, in a day marked by calm at many other tech issues.
The Internet venture company CMG Investment (CMGI) shot up then closed down 5-1/4 to 194-7/16, after soaring as high as 226, after Chief Executive Officer David Wetherell resigned from the board of Lycos (LCOS), the web portal mulling a buyout offer from USA Networks (USAI).
Wetherell voiced distaste for the complex buyout offer, which has been followed by a rapid drop in Lycos shares. CMGI is Lycos' biggest shareholder, with a 20 percent stake.
The resignation frees up Wetherell to fish for other possible buyers, and that put the wind in shares of Lycos, which rose 12-3/8 to 96-1/4.
"Obviously, (CMGI) stock should be up with Lycos," said Brian Hill, an analyst with Adams Harkness, said, referring to CMGI's one-fifth stake in the portal. But he said investors may just be looking to cash in on recent profits.
"There sure are a lot of people getting nosebleeds up at this height" of CMGI's stock price, Hill said. "Investors may be pulling back from the table."
Elsewhere among Internet stocks, Go2Net (GNET) added 18-1/8 to 84-7/8. The web guide and community operator announced a marketing accord with grocery delivery service provider General Store through Go2Net's site.
Software players solidify
Boosting its plate of e-commerce offerings was Oracle (ORCL), up 7/16 to 38-3/4 after the database-management software maker said it would purchase privately-held E-Travel Inc., which helps users book corporate travel, for $35 million in cash.
Meanwhile, rival Microsoft (MSFT) got a modest boost, gaining 2-13/16 to 161-13/16 after published reports the software company was exploring a settlement in the government's antitrust lawsuit.
A Reuters report later Tuesday cited government sources, saying that no such settlement discussions are under way.
Investors overall were hesitant about tech issues. The Nasdaq Composite dropped 4.68 points to close at 2,392.94 Tuesday.
Mixed picture in tech hardware
The reports about Microsoft followed a day after top chip-maker Intel (INTC) unveiled its own settlement with the U.S. Federal Trade Commission to avert an antitrust trial.
Intel shares lost 4-5/16 to 115-5/16.
A spokesman declined to comment on speculation swirling around Wall Street that Intel may be close to making some sort of pre-announcement.
Those rumors may have kicked up after its rival Advanced Micro Devices (AMD) fell 1-7/16 to 17-1/2 a day after the low-cost chip maker warned of "significant" losses in its first and second quarters.
Elsewhere, chip maker Texas Instruments (TXN) fell 5-15/16 to 99-1/16; memory-chip maker Micron Technology (MU) dipped 5/8 to 55-3/8.
The telecommunications-equipment giant Lucent Technologies (LU) tacked on 1-3/8 to 108-7/8 after unveiling a new laser that can carry four times more data than other lasers and will allow much faster Internet access.
Among the premier Lucent rivals, Cisco Systems (CSCO) rose 3/4 to 105-5/16, but Canada's Northern Telecom (NT) fell 13/16 to 58 and France's Alcatel Alsthom (ALA) dropped 1-11/16 to 37-7/8. 
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