Overture to buy AltaVista
By Stefanie Olsen
Staff Writer, CNET News.com
February 18, 2003, 1:56 PM PT
just in Overture Services plans to acquire search technology company AltaVista for $140 million in cash and stock, the latest sign of consolidation in the resurgent search business.
Pasadena, Calif.-based Overture, which auctions placement in search results to advertisers, said Tuesday it plans to bolster its commercial service with AltaVista's technology. Palo Alto, Calif.-based AltaVista, which is majority owned by CMGI, develops technology that crawls the Web and returns relevant search results in response to users' queries.
Overture will license the technology its customers, including Yahoo, MSN and others.
Overture also will use the AltaVista Web site to test new search services and marketing products for its advertisers. Overture said it plans to syndicate these products to its global distribution network, as well as to potential new partners.
The announced buyout follows Yahoo's recent acquisition of Inktomi, whose technology rivals that of AltaVista's.
Overture will pay AltaVista in Overture common stock currently valued at $80 million, plus $60 million in cash, and will assume certain of AltaVista's liabilities. The purchase, which is subject to customary approvals and other conditions, is expected to close in April and be accretive to Overture's earnings by mid-2004.
http://msnbc-cnet.com.com/2100-1023-...&subj=cnetnews