Before a deal can be reached, it must get approval from secured lender and former majority owner CMGI. Andover, Mass.-based Engage said if it cannot get CMGI approval in time, or if negotiations fall through, that it will liquidate its assets and "wind up its affairs."
The announcement ends Engage's attempt to salvage its business after a series of strategic changes. The fortunes of the once high-flying company were closely tied to CMGI during the dot-com boom. But the bursting of the Internet bubble in 2000 and the collapse of advertising sent Engage into a downward spiral.
Engage once competed with DoubleClick as a Web advertising network but exited the business in November 2002 when itto its employees. The company then banked its future on becoming a provider of advertising, marketing and promotional solutions, helping companies manage their digital assets.
Engage was one of the prime assets in CMGI's portfolio of majority-owned Internet companies, along with search engine technology company AltaVista. AltaVista has since been, and CMGI's business remains on shaky ground.
CMGIin September 2002. CMGI's stock once traded as high at $160 a share; its shares now trade below $2.