Media reports this week indicated that the company is considering selling the Lycos division. Citing sources familiar with the talks, the Financial Times on Thursday reported that Terra Networks is seeking the advice of investment bank Lehman Brothers and that it has received offers of about $200 million.
"Terra Networks is currently involved in a reviewing and analyzing process on some of its operating units," the Barcelona, Spain-based Terra Networks said in a filing with the U.S. Securities and Exchange Commission. "As part of this global process, different alternatives are being analyzed for Lycos U.S. No definitive decision has been adopted so far."
In 2000, Terra Networks bought U.S. portal company Lycos Inc. 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.
Terra Networks in 2002 reported a net loss of $1.7 billion. It is part of Telefónica SA, a leading telecommunications company.