Stock Watch: CMGI Falls as Company Reorganizes

CMGI Inc. (Nasdaq: CMGI) fell 3 1/2 to 43 3/16 Thursday after the Internet incubator said it plans to reduce the number of operating companies it holds in order to focus on profits.

CMGI said it has reorganized its 17 operating companies and its venture capital affiliate into six lines of business: Search and portals; infrastructure and enabling technologies; Internet professional services; e-business and fulfillment; interactive marketing; and venture capital.

According to CMGI, the new structure should allow the company to cut expenses and boost efficiency, and focus on markets where it can establish a leadership position. The company also said that it plans to further reduce the number of operating companies to between 5 and 10.

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