Engage Technologies said it agreed to buy CMGI-owned ad networks Adsmart and Flycast Communications for $2.5 billion in stock. Engage, which CMGI spun off IN July, since March has absorbed Internet ad and marketing ventures Internet Profiles Corp. and AdKnowledge as well. CMGI's move to consolidate most of its ad services at Engage is a departure from CMGI's past strategy of operating separately run but interdependent businesses. The unified Engage will be in a stronger position to compete with rival DoubleClick. Paul Schaut will remain president-CEO of Engage; George Garrick, chairman-CEO of Flycast, and John Federman, president-CEO of Adsmart, will be co-presidents of Engage until the deals close; their positions at this point are to be determined.
Copyright January 2000, Crain Communications Inc.