Lycos Sold to Korean Portal Company

 
 
By Matthew Hicks  |  Posted 2004-08-02 Email Print this article Print
 
 
 
 
 
 
 

Terra Networks sells its U.S. portal operation to Daum Communications for $105 million.

A Korean Internet company is buying Lycos Inc. and its network of Web sites for $105 million. Terra Networks SA said on Monday that is it selling the U.S.–based portal operator to Daum Communications Corp., based in Seoul, South Korea, following a competitive process led by investment bank Lehman Brothers Inc. As previously reported, Terra Networks earlier this year indicated that it was considering alternatives for Lycos.
Terra Networks, based in Madrid and part of telecommunications company Telefónica SA, had bought Lycos in 2000 for $12.5 billion, calling the combined company Terra Lycos.
Lycos U.S. operations are based in Waltham, Mass., and include such sites as Wired News, Tripod.com, HotBot.com and Angelfire.com. Click here to read more about HotBots recent launch of a new search toolbar. Terra Networks said it will retain Terra Networks USA, which operates a portal for Spanish speakers in the United States, and its stake in Lycos Europe. Lycos will transfer those assets, valued at $435 million, prior to Daums acquisition.
In a statement, Terra Networks said the sale of the companys strategy of "strengthening its presence in geographical areas in which the Telefónica Group has significant operations and in the Spanish and Portuguese speaking market." The sale of Lycos is subject to the approval of U.S. regulators. Check out eWEEK.coms Enterprise Applications Center at http://enterpriseapps.eweek.com for the latest news, reviews and analysis about productivity and business solutions.

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Matthew Hicks As an online reporter for eWEEK.com, Matt Hicks covers the fast-changing developments in Internet technologies. His coverage includes the growing field of Web conferencing software and services. With eight years as a business and technology journalist, Matt has gained insight into the market strategies of IT vendors as well as the needs of enterprise IT managers. He joined Ziff Davis in 1999 as a staff writer for the former Strategies section of eWEEK, where he wrote in-depth features about corporate strategies for e-business and enterprise software. In 2002, he moved to the News department at the magazine as a senior writer specializing in coverage of database software and enterprise networking. Later that year Matt started a yearlong fellowship in Washington, DC, after being awarded an American Political Science Association Congressional Fellowship for Journalist. As a fellow, he spent nine months working on policy issues, including technology policy, in for a Member of the U.S. House of Representatives. He rejoined Ziff Davis in August 2003 as a reporter dedicated to online coverage for eWEEK.com. Along with Web conferencing, he follows search engines, Web browsers, speech technology and the Internet domain-naming system.
 
 
 
 
 
 
 

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