CMGI PAYS $2.3 BILLION FOR 83% OF ALTAVISTA

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Internet venture capital company CMGI, Andover, Mass., said last week it will buy an 83% stake in Compaq Computer Corp.'s AltaVista Co., Palo Alto, Calif., for $2.3 billion in stock and other assets. The deal, subject to regulatory approval, includes search engine AltaVista and related properties Zip2 and Shopping.com, which CMGI said would be integrated into its network of 40 Web properties. Compaq will get a 16.4% stake in CMGI and integrate CMGI's sites into its PCs.

AltaVista said it still plans to spend $100 million in advertising in the next 18 months. About six traditional agencies are competing for the account, with a decision expected by the end of July.

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