Lycos Europe to close portal, end Web hosting
Faced with a 20 percent revenue drop and mounting losses, Lycos Europe plans to shut down a large portion of its business and seek a buyer for other parts.
Lycos Europe announced on Wednesday plans to shutter its portal and Web-hosting business and find a buyer for three other areas of its business.
The company, which last month announced a 20 percent drop in revenue to 46.9 million euros ($60.8 million) and a net loss of 17.1 million euros, said the decision was made after reviewing its strategic options for several months.
It also plans to seek a buyer for other parts of its operation: its domains, Danish portal, and shopping activities.
Investors will vote on the management proposal at the company's December 12 shareholders meeting. Should the proposal receive approval, Lycos Europe will distribute 50 million euros to shareholders by year's end.
The closure of Lycos Europe's portal, which includes search, online communities, and content channels, comes as it faces increased competition from Yahoo and Google and a decline in user traffic.