USA Networks may end bid for Lycos
Shares of Lycos soar in early trading after a news report says that media and e-commerce company USA Networks may abandon its plans to acquire the Internet search company.
Lycos stock, which has traded well below its 52-week high of 145.38 after USA Networks bid for the company in February, shot 11.45 percent or 10.25 points higher to 99.75. Shares of USA Networks edged up 0.35 percent to 35.5.
USA Networks hasn't reached a final decision on ending its agreement to buy Lycos, though strong shareholder opposition at Lycos has led USA Networks to conclude takeover plans would fail at a shareholder vote scheduled for July, the Wall Street Journal reported, citing people familiar with the matter.
USA Networks is expected to vigorously pursue other Internet deals through its Ticketmaster Online-CitySearch subsidiary, the newspaper said.
USA Networks said April 29 its first-quarter loss narrowed, while cash flow increased, helped by higher advertising revenue at its USA Network and Sci-Fi cable-television channels.
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