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Compaq to spin off AltaVista

Published on .

Compaq Computer Corp., Houston, plans to spin off AltaVista Co., the Internet search engine it acquired with its purchase of Digital Equipment Corp. last year. Compaq President-CEO Eckhard Pfeiffer said Palo Alto, Calif.-based AltaVista would go forward with an initial public offering, but he declined to say when. Compaq named Rod Schrock president-CEO of AltaVista, from senior VP of Compaq's consumer product group. Plans reportedly include a $60 million brand development and marketing campaign this year to back AltaVista. DDB Needham Worldwide, New York, is agency of record for Compaq and AltaVista, but executives wouldn't say whether it will continue to handle the search engine.

Copyright January 1999, Crain Communications Inc.

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