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Tech Industry

Lycos buys stake in Autoweb.com

Lycos (Nasdaq: LCOS) said Monday that it will take a 10 percent stake in Autoweb.com (Nasdaq: AWEB) as part of a four-year strategic alliance.

Under the terms of the deal, Lycos will receive annual "multi-million-dollar payments" from Autoweb. The two companies will also share advertising and e-commerce revenue, traffic and consumer information generated from new products and marketing programs.

The Autoweb/Lycos automotive channel gives Autoweb a distribution platform as it battles Autobytel.com (Nasdaq: ABTL). The pair went public at the same time last year and have been dueling ever since. Autoweb will have access to Lycos' 33 million users.

Aside from developing the portal product, the two companies will also target wireless and web-enabled auto services. The companies will focus on "partnering with vehicle manufacturers and automotive technology suppliers to enhance the next generation of in-vehicle wireless systems."

"I believe the synergies resulting from this deal will strengthen Autoweb's market position, allowing us to reach a wider audience and uniquely address the strategic needs of manufacturers in the rapidly evolving online automotive market,'' said Dean DeBiase, CEO of Autoweb.com, in a statement.

Autoweb reports earning Tuesday after market close. Wall Street is expecting a first quarter loss of 34 cents a share, according to First Call Corp.