Media company and publisher Primedia Inc., New York, has formed a strategic alliance with CMGI Inc., to develop a series of Web ventures related to specific industries.
Andover, MA-based CMGI, a network of Internet companies that provide online marketing, content and community, will acquire approximately 5% of Primedia (8 million shares) in exchange for 1.53 million shares of CMGI.
Under the agreement, CMGI and Primedia will identify key vertical segments that span both business-to-consumer and business-to-business areas in which to build new businesses. Industries the companies may target include agribusiness, digital entertainment, electrical/construction and telecommunications. The business-to-business ventures will cover vertical online communities being developed by Primedia’s IndustryClick, a business-to-business portal.
CMGI@Ventures, CMGI’s affiliated venture capital arm, is expected to participate in the alliance. Also, it is intended that each venture developed by the two companies “will access and leverage CMGI-related product and services,” such as MyWay.com, Engage, 1stUp.com and NaviSite, to help drive traffic and provide access and hosting capabilities, according to a published statement.
DIRECT Newsline and DIRECT magazine are published by Primedia.
Network
