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Key people at CMGI.
CMGI is a Waltham, Massachusetts-based holding company that historically provided supply chain management services and operated a prominent venture capital arm focused on internet and technology startups. During the dot-com bubble, the organization reached a peak market capitalization of $41 billion and generated $898 million in annual revenue in 2000 before eventually restructuring its operations. Through its @Ventures division, the firm incubated over 70 companies and made highly publicized investments in recognizable internet pioneers such as Lycos, GeoCities, and AltaVista. The enterprise later transitioned its primary focus toward global supply chain solutions through subsidiaries like ModusLink, operating today as a much smaller entity with a headcount of fewer than 25 employees and under $5 million in current revenue. The business was originally founded in 1968 by Glenn and Gail Mathews as the College Marketing Group.
CMGI, Inc. was an internet holding and investment company during the dot-com era, providing technology, e-commerce, and supply chain solutions to help businesses market, sell, and distribute products.[1] It operated as a "bag of brands," owning subsidiaries like Lycos, AltaVista, UBid.com, and NaviSite, while investing in early internet startups through its CMG @Ventures arm; its stock surged over 1,000% from 1998 to 2000, peaking at a $41-50 billion market cap before crashing 99% post-bubble.[3][4][5]
The company served software publishers, hardware makers, telecoms, and financial firms with services like inventory management, EDI, fulfillment, and online payments, expanding globally across North America, Europe, and Asia.[1] Post-bubble, it divested assets, consolidated to nine core operations by 2001, and rebranded multiple times—eventually becoming Steel Connect, Inc. (supply chain services) and later ModusLink Global Solutions (NASDAQ: MLNK).[2][3][5]
Founded in 1968 as College Marketing Group by Glenn and Gail Mathews, CMGI started by selling mailing lists of university faculty to textbook publishers.[3] In 1986, following a leveraged buyout, David Wetherell became CEO, shifting focus toward technology and internet investments.[3]
The pivot accelerated in 1994 with its IPO and the launch of CMG @Ventures after selling BookLink to AOL; key investments included $1 million for 80% of Lycos (its biggest win), Geocities, NaviSite, and a $2.3 billion stake in AltaVista in 1999.[3] During the bubble, it acquired AdForce for $500 million and RagingBull.com, even securing naming rights to the New England Patriots' stadium, humanizing its wild ride from niche marketer to internet powerhouse.[3]
CMGI epitomized the dot-com bubble's hype, riding the internet adoption wave with investments in search, portals, and e-commerce infrastructure amid explosive VC funding and retail mania.[3][4] Timing was perfect pre-2000: cheap capital fueled over $50 billion valuations despite thin profits, influencing the ecosystem by accelerating web startups like Lycos (pivotal for search) and funding B2B plays via @Ventures.[1][3]
Market forces—broadband growth, e-tail optimism—favored it initially, but the 2000-2001 bust exposed overexpansion; divestitures like Lycos pared it down, highlighting risks of conglomerate models in volatile tech.[2] It shaped lessons for today's AI boom parallels, where frothy valuations (e.g., OpenAI at $500B) echo CMGI's fate if growth stalls.[4]
Today, as Steel Connect/ModusLink (MLNK), CMGI's remnants focus on B2B supply chain for software firms, a lean survivor from bubble excess with moderate credit stability but no bubble-era glory.[3][5][7] Next could involve niche logistics growth amid e-commerce resurgence, but "embattled markets" persist—analysts in 2002 doubted longevity without innovation beyond recovery waits.[2]
Shaping trends like AI-driven supply chains may boost it, evolving influence from poster child of bust to cautionary efficiency play; watch for M&A or volatility spikes, as seen in 2023-2025 credit data—history warns against hype without profits.[4][7] This ties back to its core: a rocket-fueled bet on digital infrastructure that crashed hard, underscoring timeless tech investing discipline.
Key people at CMGI.
