CMGI Dis-Engages

Citing 'business strategy' differences, the Internet investor pulls its offer to buy the remainder of the ad technology firm. CMGI execs also quit Engage's board of directors

Internet investor CMGI has pulled its offer to buy Engage and is distancing itself from the troubled online ad technology firm.

“Senior management of Engage and CMGI could not reach a consensus as to the execution of the business strategy for Engage,” CMGI CFO Thomas Oberdorf said in a statement issued late Friday.

A spokesman for Engage would not elaborate on the dispute and said the company was “investigating other sources of financing.”

CMGI currently holds approximately 148 million shares of common stock of Engage, good for 75.5 percent of the company. Both companies are based in Andover, Mass., and have struggled mightily in the last year, enduring layoffs, restructuring and management shakeups.

Some insiders speculated CMGI would merge the embattled online ad player with another one of its marketing properties.

In addition to the scuttled deal, David S. Wetherell and George A. McMillan, CMGI’s chairman and CEO respectively, resigned their seats on Engage’s board of directors, effective immediately.

Engage said he was unsure of the timetable for filling the board vacancies.

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