CMGI Reorganizes

Updated from 9:01 a.m. EDT

Internet company CMGI (CMGI Quote - Cramer on CMGI - Stock Picks) will reorganize its 17 majority owned companies and its venture capital affiliate into six business lines, the company said Thursday.

The announcement was the result of an ongoing strategic review aimed at making the company's disparate businesses more efficient.

The six lines of business include: search and portals; infrastructure and enabling technologies; Internet professional services; interactive marketing; e-business; and venture capital.

In addition, CMGI cancelled its plans with Hicks, Muse, Tate & Furst to launch an international venture capital fund. It will, however, continue to co-invest with HMTF if opportunities arise.

"Internally, we have always evaluated the CMGI operating companies in the context of their respective market disciplines, and have demonstrated both consistent organic growth and a clear pattern of strategic mergers and acquisitions to build on these five operating segments," the company said in a statement.

Andover, Mass.-based CMGI will also integrate its three venture capital funds into a single evergreen fund called CMGI@Ventures IV. In the fourth quarter, the company will begin reporting its consolidated revenues by operating segment, with its venture capital arm reporting separately. The company is scheduled to report fourth-quarter earnings on Sept. 21.

CMGI finished Thursday regular trading down $3.50, or 8%, at $43.19.