CMGI Acquires uBid.com
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CMGI will issue .2628 CMGI shares for every share of uBid.com held on the closing date of the transaction. Upon closing, uBid.com will become a majority-owned operating company of CMGI (CMGI).
uBid.com (UBID) serves both the business-to-business and business-to-consumer sectors. Toward the B2C end, the auctions let consumers set their own prices on popular products at discounts. For the B2B market, uBid.com auctions provide leading suppliers such as Sony (SNY), IBM Corp. (IBM) and Hewlett Packard (HWP), with an efficient channel for selling extra items.
uBid.com's auctions feature a rotating selection of brand name items in 12 fields or "stores": computers; monitors, printers and more; consumer electronics; home & leisure; sports ad recreation; jewelry & gifts; off-lease computers; clothing and apparel; home improvements; art; appliance; and travel and events.
"Online auctions, both B2C and B2B, are one of the fastest-growing areas of the Internet, and uBid.com has distinguished itself in the market with highly differentiated merchandising and inventory management capabilities that will prove hugely valuable as this model scales for the future," said David Wetherell, CMGI's chairman and chief executive officer.
CMGI has snapped up a number of advertising companies in recent months. Earlier this week, CMGI purchased a 5 percent stake in business-to-business Net firm divine interVentures inc.