CMGI (Nasdaq: CMGI) was atUS$4.13, down 19 cents, in Friday morning trading after the Internet incubator said directors”reconfirmed its support” for venture capital affiliate @Ventures.
The statement was issued after a report in the San Jose Mercury News [email protected] has run out of cash and is no longer able to fund the companies inits portfolio. The report said CMGI is cutting back on its support [email protected] as part of its plans to cut cash.
“As announced last fall, CMGI is continuing with its corporate restructuringfocused on growth, profitability and leadership across all our businesssegments, including @Ventures,” said David Wetherell, chairman and chiefexecutive officer of Andover, Massachusetts-based CMGI.
“Throughout this restructuring period, CMGI has been working aggressively toachieve greater focus and clarity into our larger business goals, as well asour cash position,” Wetherell said. “Over the last several months, and followinga number of major restructuring efforts, the CMGI board has resolved torenew its commitment to @Ventures.”
Wetherell added: “We expect to continue making follow-on investments in existing portfoliocompanies successfully executing on their business plans, as well as aselect number of new investments which represent promising opportunities forCMGI.”
CMGI said @Ventures will focus fewer new investments, primarily in the wireless industry, Web-based distributed storage industry andnatural-language processing technologies.
CMGI said it will further detail its plans for @Ventures on Tuesday, whenCMGI reports results for the second fiscal quarter. CMGI previouslypredicted revenue of $335 million to $345 million for the quarter, whichended in January.