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Analysts slam Lycos stock after billion-dollar merger announcement

Although many analysts applaud the merger for its long-term possibilities, they express concern about short-term issues involving the integration of the two businesses.


Spanish ISP Terra Networks scoops up Lycos for $12.5 billion in a deal that will give the portal a stronger international presence. Lycos may have seen the writing on the wall, as it struggled to maintain a place among Internet giants America Online, Yahoo and MSN.


  Lycos at a glance

HQ: Waltham, Mass.  
CEO: Robert Davis  
CFO: Edward Philip  
Employees: 785  
Annual sales: $136 million  
Annual income: -$52 million  
Date of IPO: April 1996  
Ticker: LCOS  
Exchange: Nasdaq

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Bloomberg (5/16/00)
By CNET News.com staff
May 17, 2000, 1:35 p.m. PT

Lycos shares battered after analyst downgrades
update Shares of the portal drop after several financial analysts downgrade the stock on concerns that the company's merger with Terra Networks could face some tough challenges.

Analysts: Lycos got out at right time
The deal may have been the right one, as many analysts doubted Lycos' ability to close the gap with leaders America Online, Yahoo and Microsoft's MSN.

Lycos chief scores "outrageous coup"
The multinational merger is a triumph for 43-year-old executive Bob Davis, whose rise may be seen as a case study in persistence.

Big Lycos deal really no big deal
According to an attorney close to the deal, the agreement came together with a distinct lack of secrecy or exotics--characteristics that typically enshroud multibillion-dollar, multinational acquisitions.

Terra buys Lycos in $12.5 billion deal
update Terra Networks grabs Lycos in an all-stock deal, marking the first time a U.S. portal has been acquired by a foreign company.

previous coverage
Is there room for sites other than AOL or Yahoo?
Lycos is at a critical juncture--one it shares as AOL and Yahoo run away with the lion's share of the Web's eyeballs and advertising dollars.

Lycos retreats from ambitious broadband plans
Web portals, which once scrambled to assure the public of their abilities to serve high-speed Net subscribers, quietly temper their original zeal.