Steel Connect

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Steel Connect, Inc.
Public company
Traded asNASDAQSTCN
IndustrySupply chain management
Founded1968; 50 years ago (1968)
HeadquartersWaltham, Massachusetts
Key people
James R. Henderson, CEO
Warren G. Lichtenstein, Chairman
RevenueDecrease $436 million (2017)
Decrease -$25 million (2017)
Total assetsDecrease $281 million (2017)
Total equityDecrease $62 million (2017)
Number of employees
1,990 (2017)
Websitewww.moduslink.com
Footnotes / references
[1]

Steel Connect, Inc. is a company that provides supply chain management services to software companies. During the dot-com bubble, the company had a market capitalization of $41 billion and owned the naming rights to the home stadium of the New England Patriots. Between 1995 and 1999, its stock was the best performing stock in the United States, returning 4,921%.[2] After the crash of the bubble, the stock price fell 99%.

The company was formerly known as College Marketing Group, CMG Information Systems, CMGI Inc., and ModusLink Global Solutions, Inc.

History[edit]

The company was formed in 1968 as College Marketing Group by Glenn and Gail Mathews. At first, the company sold mailing lists of university faculty to textbook publishers.

In 1986, after a leveraged buyout, David Wetherell became CEO.

In February 1994, the company became a public company via an initial public offering. That same month, Wetherell founded BookLink, in which the company invested $900,000. BookLink was sold to America Online in November 2004 and the company used the proceeds of the sale to set up CMG @Ventures, a venture capital firm that invested in internet companies.[2]

The company invested $1 million for an 80% ownership interest in Lycos, which was its most profitable investment.

In 1997, the company invested in Geocities.[3] It also acquired a majority interest in Navisite.[4]

In June 1999, the company agreed to acquire an 83% stake in AltaVista from Compaq for $2.3 billion.[5]

In September 1999, the company acquired AdForce, founded by Chad Steelberg, for $500 million.[6]

In November 1999, Altavista acquired RagingBull.com after Wetherell noticed the website while on vacation.[7]

In March 2000, the company acquired Yesmail.[8]

In August 2000, the company agreed to pay $7.6 million per year for 15 years for the naming rights of the home stadium of the New England Patriots.[9] In August 2002, after the bursting of the dot-com bubble, the company modified the agreement and the stadium name was changed to Gillette Stadium.[10]

In April 2000, the company acquired uBid.[11]

In 2000, the company recorded a $661 million gain when Yahoo! acquired its interest in GeoCities. By that time, its stock price had declined 78% from its high earlier in the year.[12]

In February 2004, the company acquired Modus Media.[13]

In September 2008, the company changed its name to ModusLink Global Solutions, Inc.[14]

In December 2017, the company acquired IWCO Direct for $476 million in cash.[15]

In February 2018, the company changed its name to Steel Connect, Inc.[16]

References[edit]

  1. ^ "Steel Connect, Inc. 2017 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ^ a b "CMGI Can Defy Gravity Only So Long". The New York Times. December 10, 2000.
  3. ^ Simons, David (May 31, 2001). "Making Sense Of CMGI". Forbes.
  4. ^ "CMGI cuts ties with past, sells NaviSite". The Register. September 12, 2002.
  5. ^ "CMGI inks AltaVista deal". CNNMoney. August 5, 2002.
  6. ^ "CMGI acquires AdForce". CNNMoney. September 20, 1999.
  7. ^ "CMGI's AltaVista acquires Raging Bull". American City Business Journals. November 29, 1999.
  8. ^ "CMGI completes acquisition of yesmail.com". American City Business Journals. March 13, 2000.
  9. ^ GRIFFITH, TED (August 23, 2000). "CMGI buys stadium naming rights". Marketwatch.
  10. ^ "CMGI Field is now Gillette Stadium". CNNMoney. June 29, 1999.
  11. ^ "CMGI Completes Ubid.com Acquisition; Integration of E-Commerce Auction Site to Leverage Synergies across CMGI Network" (Press release). Business Wire. May 1, 2000.
  12. ^ "CMGI beats estimates". CNNMoney. September 21, 2000.
  13. ^ "CMGI Completes Acquisition of Modus Media to Form ModusLink" (Press release). Business Wire. August 2, 2004.
  14. ^ "CMGI Changes Name to ModusLink Global Solutions, Affirming Leading Position in Global Supply Chain Business Process Management" (Press release). Business Wire. September 29, 2008.
  15. ^ "ModusLink Announces Acquisition of IWCO Direct for $476 Million in Cash" (Press release). PR Newswire. December 18, 2017.
  16. ^ "ModusLink Global Solutions, Inc. to Change Name to Steel Connect, Inc" (Press release). PR Newswire. February 26, 2018.