Activate Gets Ready to Stream Up Additional Investors
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CMGI, the Andover, Massachussetts-based restructuring Internet investor and operator, posted widened second-quarter losses and is looking to exit from its majority stake in Seattle-based streaming broadcast company Activate.
Activate Founder and CEO Jeff Schrock told seattle.internet.com that Activate is currently seeking additional investors, and CMGI has comitted to supporting the company until additional financial partners are found.
"CMGI is basically an incubator and Activate has hatched. In order to get us to the next stage, we are now seeking additional investors," says Schrock.
Schrock notes that Activate is in great shape. "We have invested our VC in infrastructure, not in Superbowl advertising," says the CEO.
Activate Grand Central is located at the company's Seattle headquarters. Activate also has offices in New York, San Francisco and Toronto.
Back on the CMGI front, CMGI expects third quarter revenue of between $280 million and $290 million and restructuring charges of between $48 million and $52 million for the third quarter. Further future guidance is expected in May after CMGI executives review the budgets from their operating companies.
Addressing cash burn, CMGI CEO David Wetherell says that CMGI has $1.5 billion in cash and securities, enough to fund operations 27 months. He also said the search for a COO for the company was ongoing.
CMGI's results were announced after markets closed Tuesday. Earlier, shares finished up .156, or 4 percent, to 4. In the last 52 weeks, the stock has been as high as 137 and as low as 3.625.
*Colin Haley, managing editor of boston.internet.com , contributed to this story.