CMGion buys Adforce

Date view Thread view Subject view Author view

From: Adam Rifkin (Adam@KnowNow.Com)
Date: Wed Oct 11 2000 - 07:30:39 PDT

[CMGion still doesn't have a website since its April launch, but heck, with
$60 million from Sun, Compaq, and Novell, who needs a website? CMGi
selling one of its companies to one of its other companies is nothing new,
but selling a company that used to be public to a company that's only 6
months old seems a little strange. AdForce is an interesting company
because some of the most talented people there left after the CMGi merger
for places like eBuilt and Redleaf. CMGion is an interesting company
because we wonder how much of its vision was influenced by Rohit's
discussions with Bill Hawkins in January. Rohit, look at the AdForce
numbers: 0.5 second latencies and 1 billion served per day -- sound
familiar? Bonus points: Chuck Berger knows Randy Komisar from the Claris
days. Wow, we *do* believe in the interconnectedness of all things... :]

CMGion Acquires AdForce; Acquisition Jumpstarts CMGion's Emerging Platform
for Dynamic Delivery of Content and Applications at `the Edge'

Wednesday, October 11, 2000 07:06 AM

ANDOVER, Mass. and CUPERTINO, Calif.--(BUSINESS WIRE)--Oct. 11, 2000--

Editor's Summary:
-- CMGion has acquired AdForce, a leading provider of centralized,
outsourced ad management and delivery services
-- CMGion will license AdForce's robust, scaleable serving technology to
support its emerging platform for dynamic delivery of content and
applications at `the edge.'
-- Marriage of AdForce and CMGion is a win-win and a strong step towards
the deployment of an Internet-wide, enhanced edge infrastructure.
-- Existing strategic partnerships with CMGI, Sun Microsystems, Novell and
Compaq to benefit from the addition of AdForce's global content delivery
platform to CMGion's emerging Internet operating network.
-- Chuck Berger, chairman and CEO of AdForce, has been named CEO of CMGion.
Effective immediately, CMGion will relocate its headquarters to Cupertino,
California, the current and continuing headquarters of AdForce.
-- Acquisition enables CMGion to benefit from AdForce's seasoned management
and engineering teams, as well as the existing corporate infrastructure
AdForce has built over the past three years.
-- AdForce will continue to operate as a wholly-owned subsidiary of CMGion,
maintaining its focus as a technology leader in digital ad management and
delivery across the PC-based Internet, as well as new and emerging
interactive devices including cell phones, PDAs, kiosks, point-of-sale
devices and interactive television.
-- Acquisition enables CMGI to further define its infrastructure and
enabling technologies business segment, while accelerating efforts for
market leadership and profitability.

CMGion, an emerging Internet operating network designed to enhance the
performance and functionality of application and content delivery over the
Internet, and a majority-owned operating company of CMGI, Inc. (Nasdaq:
CMGI, news, msgs), today announced that it has acquired AdForce, LLC a
leading online provider of centralized, outsourced ad management and
delivery services. Prior to today's acquisition, AdForce was also a
majority-owned operating company of CMGI. Formed in April 2000, CMGion has
received strategic investments from CMGI, Sun Microsystems Inc., Novell,
Inc. and Compaq Computer Corporation.

CMGion will license and deploy key components of AdForce's technology
within its emerging network platform, furthering CMGion's core business
focus to enhance the speed, performance and functionality of the Internet
by enabling a global platform that allows content transformation,
applications and profiling to be executed at "the edge." The CMGion service
is designed to improve the end-user experience of any Web-based
application, while profiling services will allow enterprise web sites and
dot.coms to effectively "mine the flow" of their Internet traffic by
optimally profiling the content and application requests of users.

This will enable companies to dramatically improve the user experience
while pinpointing opportunities for more effective customer relationship

CMGion expects to leverage Sun and Compaq servers, directory, caching and
authentication services from Novell, as well as profiling technology from
Engage, to both deliver and perform an audit and analysis of content
flowing between content providers and content users, be it within a
specific network/enterprise, or on the World Wide Web. Now, with the
addition of AdForce, the benefits are enhanced to include the delivery and
management of content and applications to a range of digital media,
including wireless devices and interactive television. As a solution for
service providers, network operators, content providers and ultimately, end
users, CMGion promises to offer greater efficiency, operating leverage and
the ability to monitor, measure and direct online activity to continually
improve the online experience for each constituency.

AdForce will continue to provide centralized, outsourced ad management
services as a wholly-owned subsidiary of CMGion, maintaining its core
business as a technology leader and revenue enabler. AdForce will remain
focused on digital delivery across the PC-based Internet, as well as on new
and emerging digital media platforms including cell phones, PDAs, kiosks,
point-of-sale devices and interactive television.

"Today's acquisition gives CMGion a considerable jumpstart in the
development of its core network platform. CMGI acquired AdForce last year,
in part, because of the tremendous benefits and synergies its serving
technology could bring to the larger CMGI network. Over the past several
years, AdForce has developed an extremely versatile media delivery
infrastructure, and has been singularly focused on expanding its technology
capabilities to serve advertising wherever a digital signal may be sent,
including the PC-based Internet, wireless devices, interactive television
and more. Under the CMGion umbrella, we want to leverage that expertise to
serve a virtually limitless number of applications and types of content to
any user, on any device, at any time," said David Wetherell, chairman and
CEO, CMGI. "Additionally, CMGion has gained the seasoned executive
leadership of Chuck Berger, as well as a proven engineering and management
team who shares our excitement for the promise of CMGion."

"This announcement marks a milestone in the development of CMGion," said
Harold Enright, vice president, corporate development, Compaq Computer
Corporation. "As a strategic investor, technology partner, and a company
committed to improving the customer experience on the Internet, Compaq
endorses the addition of AdForce to CMGion as it provides the key
components of technology, management and engineers necessary for
implementing CMGion's vision. The addition of AdForce also offers Compaq
opportunities to extend its key foundation technologies, including Internet
appliances, high-end servers and storage systems, as well as professional
services across AdForce's network."

In conjunction with the acquisition of AdForce by CMGion, Chuck Berger,
chairman and CEO of AdForce, will immediately assume the role of CEO for
CMGion. The role of CMGion CEO had previously been filled on an interim
basis by CMGI chairman and CEO David Wetherell. Berger will also continue
his role as CEO of AdForce.

Berger joined AdForce in July 1997 after serving as chairman and CEO of
Radius, Inc. He has also held executive positions with Claris Corporation,
Sun Microsystems and Apple Computer, Inc.

AdForce maintains one of the largest centralized ad serving platforms in
the world, with a current average impression delivery speed of less than
0.5 seconds -- more than 50 percent faster than its nearest competitor. The
AdForce architecture has been designed to support virtually any volume by
adding additional servers at each level of its network architecture,
ensuring 100 percent system availability. AdForce's market-leading system
performance is supported by an extensive global ad serving architecture and
is enhanced by strategic relationships with Akamai and Digital Island that
augment AdForce's infrastructure with 2,000 additional servers located in
more than 100 countries. Today, AdForce's capacity exceeds 1 billion ads
per day.
Effective with Berger's appointment, CMGion will relocate its corporate
headquarters to Cupertino, California, the current headquarters of AdForce.
AdForce also maintains offices in Costa Mesa, CA; New York, NY; Frankfurt,
Germany and Hong Kong. CMGion will continue to maintain its existing
location in Andover, Massachusetts.

"The synergies between CMGion and AdForce are clear - CMGion gains a
leading turnkey ad serving and content delivery technology solution from
AdForce and AdForce takes advantage of CMGion's global distribution
platform and industry partnerships with companies such as Compaq, Novell
and Sun," said Chuck Berger, CEO of CMGion and AdForce. "The marriage of
these two companies is a win-win and a strong step towards the deployment
of an Internet-wide, enhanced edge infrastructure."

The acquisition of AdForce by CMGion marks the second intra-company
acquisition enacted since CMGI's September 7, 2000 announcement to align
its majority-owned operating companies into five business segments.

About AdForce

AdForce, LLC(R), a majority-owned operating company of CMGI, Inc., is "The
Force in Digital Marketing"(TM) and a leading provider of centralized
online advertising services, enabling publishers, rep firms and advertisers
to leverage the unique advantages of the Internet as the first fully
interactive medium. Deploying advanced scalable technology and backed by
robust data centers, the AdForce service delivers billions of impressions
monthly for some of the Internet's most prominent advertisers. AdForce
provides a comprehensive suite of products, which allow advertisers and
publishers to target, deliver, measure and analyze Internet advertising
programs for the best results. AdForce has offices in Cupertino, CA, Costa
Mesa, CA, New York, NY, Europe and Hong Kong.

About CMGI and CMGI @Ventures

CMGI, Inc. (Nasdaq: CMGI, news, msgs), a leading global Internet operating
and development company, represents a network of 70 established and
emerging companies spanning a range of vertical market segments, including
search and portals; infrastructure and enabling technologies; e-business
and fulfillment; interactive marketing; and Internet professional services.
CMGI leverages the technologies, content and market reach of its extended
company network to foster rapid growth and industry leadership across the
Internet Economy. Compaq, Intel, Microsoft, Pacific Century CyberWorks and
Sumitomo hold minority positions in CMGI.

CMGI's majority-owned operating companies include Engage (NASDAQ: ENGA,
news, msgs), NaviSite (NASDAQ: NAVI, news, msgs),, Activate,
AdForce, AltaVista, CMGion, CMGI Solutions, Equilibrium, ExchangePath,
iCAST,, NaviPath, SalesLink, and CMGI
@Ventures has ownership interests in 54 companies, including Lycos, Inc.
(NASDAQ: LCOS, news, msgs), Critical Path (NASDAQ: CPTH, news, msgs), (NASDAQ: MTHR, news, msgs), Ventro (NASDAQ: VNTR, news,
msgs) and Vicinity (NASDAQ: VCNT, news, msgs).

CMGI's corporate headquarters is located at 100 Brickstone Square, Andover,
MA 01810. CMGI @Ventures has offices there, as well as at 3000 Alpine Road,
Menlo Park, CA 94028. For additional information, see

This release contains forward-looking statements based on current
expectations or beliefs, as well as a number of assumptions about future
events, and these statements are subject to important factors and
uncertainties that could cause actual results to differ materially from
those described in the forward-looking statements. The forward-looking
statements in this release address a variety of subjects including, for
example, the expected benefits from the acquisition of AdForce by CMGion
and the expected benefits to CMGion of its strategic relationships with
Sun, Compaq and Novell. The following factors, among others, could cause
actual results to differ materially from those described in these
forward-looking statements: CMGion may experience difficulties integrating
the technology licensed from AdForce, operations and personnel, the
combination may strain managerial and operational resources as management
tries to oversee the larger operations; demand for the companies' products
and services may not grow as fast as expected, the ability of CMGion to
reach definitive agreement with each of Sun, Compaq and Novell on terms of
their respective strategic relationships with CMGion; and increased
competition and technological changes in the markets in which CMGion and
AdForce compete. For a detailed discussion of these and other cautionary
statements, please refer to the filings made by CMGI with the Securities
and Exchange Commission, including the Annual Report on Form 10-K of CMGI
for the most recently ended fiscal year and the Quarterly Report on Form
10-Q of CMGI for the most recently ended fiscal quarter.

AdForce, the AdForce logo and Force in Digital Marketing are trademarks of
AdForce LLC. All other products and services mentioned may be trademarks or
service marks of their respective owners.


Dumb networks and stupid storage are the smart solution for the new millennium. -- George Gilder, _Telecosm_, page 146

Date view Thread view Subject view Author view

This archive was generated by hypermail 2b29 : Wed Oct 11 2000 - 07:39:22 PDT