Is Lycos Deal on Terra Firma?
By Gavin McCormick May 16, 2000 Back in March, when a Madrid newspaper first picked up the story that Waltham portal Lycos Inc. (LCOS) was in merger talks with Telefonica of Spain, Lycos employees dismissed the rumor with disdain. Today they’re watching the wires like everyone else, wondering if this will be the day the merger of Lycos and Telefonica’s Internet service provider Terra Networks (TRRA) is formally announced. The New York Times this morning said the three companies are expected to announce a $12 billion acquisition deal this afternoon. The New York Times and the Financial Times both reported that the new company would also form an alliance with German media firm Bertelsmann. The merger would create a multinational company with a market capitalization of $22.44 billion, larger than all Internet players but America Online Inc. and Yahoo! Inc. A $12 billion purchase price would value Lycos stock around $108 per share, fully 75 percent more than Monday’s closing price. A Lycos
