Lycos Sold to Korean Portal Company
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.
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.