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News > Technology
Alta Vista delays IPO
April 17, 2000: 11:56 a.m. ET

Internet portal postpones initial offering due to volatile market conditions
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NEW YORK (CNNfn) - AltaVista, the Internet portal, postponed its planned initial public offering Monday due to market conditions, according to lead underwriter Morgan Stanley Dean Witter.
    The company was to offer 14.8 million shares, valued at $255 million, which were to be priced this week. AltaVista officials were not immediately available for comment.
    AltaVista joins a series of other companies that have cancelled IPOs because of depressed market conditions, but since it is larger and more established than many of the others, its decision to postpone stands out as a sign of more bad news for the markets and the high-tech sector.
    "AltaVista was one of the name-brand companies on the docket, and it's controlled by CMGI (CMGI: Research, Estimates), and they felt right now is not the best time to float an initial public offering," Jeffrey Hirschkorn, IPO analyst of IPO.com, told CNNfn's "Before the Bell."
    "They went into the old clich, owing to the market conditions. And that is basically going to hurt the market right now. That was one of the headlining deals on this week's calendar. It was supposed to price tonight through Morgan Stanley. That's definitely a setback," Hirschkorn said.
    AltaVista, one of the most-visited sites on the Internet, had revenue of $50.9 million in the three months ended Jan. 31, and has been rapidly growing its audience through a subsidiary company that offers free Internet access.
    graphicSince last summer, AltaVista has been majority-owned by the successful Internet incubator CMGI Inc., which aggressively marketed the site and worked to transform it from a bare-bones search engine to a major commercial portal.
    In its latest quarter, ended in January, it had a loss of more than $272 million.
    Although AltaVista was one of the original Internet search engines, its timing with investors has been bad. It first tried to go public in 1996, in a deal that also was cancelled because of weak market conditions. It later was acquired by Compaq Computer Corp. (CPQ: Research, Estimates)., which spun it off last year. Back to top
    --from staff and wire reports





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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.