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CMGI posts operating loss
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March 11, 1999: 8:39 p.m. ET
Internet investment firm prefers outside bid for Lycos
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NEW YORK (CNNfn) - CMGI Inc. Thursday said it would prefer to find an alternative bidder for Lycos Inc. to upset Lycos' current merger plans with USA Networks Inc.
In a conference call with reporters and analysts, CMGI Chief Executive Officer David Wetherell said his company is not likely to make a bid of its own for the Internet portal.
"I don't forsee that as a likely possibility," Wetherell said, referring to the possibility CMGI might launch a counterbid for Lycos.
On Tuesday, Wetherell, a founding member of the Lycos board of directors, resigned to protest what he considered the unfavorable terms of Lycos's merger into media mogul Barry Diller's USA Networks. CMGI is the largest investor in Lycos with an 18.5 percent stake.
Earlier, CMGI reported a second quarter operating loss of 41 cents per share, far short of analyst targets of 22 cents, as reported by First Call.
CMGI, as primarily an investment vehicle, reported a host of one-time items in its second quarter pertaining to stock purchases and sales - including a $44 million gain from the sale of shares of Internet portal Lycos (LCOS).
Including the one-time items, CMGI earned $14.1 million, or 28 cents per diluted share, on revenue of $39 million. This compares with a loss of $5.8 million, or 15 cents per diluted share, on revenue of $15.2 million in the same quarter one year ago.
Wetherell said CMGI has received hundreds of e-mails - many of which investment funds - that have expressed distaste for the USA deal.
CMGI (CMGI) shares closed at 182-1/18, down 9-9/16, after starting the year at 53-1/4. Lycos (LCOS), which has ridden an upward ride since Wetherell's resignation, fell 1 to 109.
-- from staff and wires
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CMG Information
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