Goto.com, Inc. (Nsadaq: GOTO) shares were up Friday on the announced of a three-year search distribution agreement with newly formed Terra Lycos (Nasdaq: TRLY).
Shares of GoTo climbed 0.88 to 16.13 early in the Friday session. Terra Lycos was up 1.81 to 24.82.
Under the deal, GoTo's "Premium Listing" keyword search service will be included with Terra Lycos’ Lycos.com and HotBot search engines. The premium listings are pay-for-performance listings submitted by GoTo&l8217;s advertisers. The deal targets advertisers who are seeking placements in Terra Lycos’ search networks.
Terms of the deal were not disclosed but, according to a press release, potential revenues are expected to be in the tens of millions of dollars.
According to Ted Meisel, GoTo’s president and chief executive officer, the deal is part of the company’s plan to expand its affiliate network.
The e-commerce company has been active of late, acquiring SearchUP and announcing that it intends to change its image from that of a Web destination site to a Web and e-business service provider.
The deal with Terra Lycos will allow GoTo to tap into the huge network of the new company formed by the buyout of U.S. Web portal Lycos by Spanish giant Telefonica’s Internet arm, which operates in 40 countries.