Shares of CMGi Inc. (Nasdaq: CMGI) rose 5 11/16 to 99 15/16, or 6 percent, on Monday after Dell Computer Corp. (Nasdaq: DELL) and Microsoft Corp. (Nasdaq: MSFT) made equity investments in NaviSite, a unit of CMGi.
Dell bought a 4.9 percent stake and Microsoft purchased 4.4 percent of NaviSite, which handles Web site hosting, similar to Exodus Communications Inc.'s (Nasdaq: EXDS) core business.
NaviSite will use Dell's servers, storage devices and computers and use Microsoft for its streaming media technology, both on a non-exclusive basis.
CMGI, known mostly for its stake in Lycos Inc. (Nasdaq: LCOS), has a breadth of Internet companies in its stable of investments. Among CMGi's investment is Activerse, which sells Ding!, an online instant messaging software, AdSmart, an online advertising rep, Engage Technologies, which offers online ad servers, and Planet Direct, a Web portal.