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Lycos For Sale
April 28, 2004
The Spanish parent of Lycos is reportedly
considering a sale of the Waltham-based Internet unit
that it bought at the peak of the dot-com boom for $12.5
billion.
Lycos, which Barcelona-based Terra
Networks bought in 2000 to become Terra Lycos, would
likely fetch a much smaller price now. Terra is willing
to consider selling for $200 million, according to a
CNET News.com report.
Lycos lost $24 million last year,
but is expected to make a profit this year, the report
said. 'They're one of these ironic properties that continues
to get tremendous amounts of traffic,'' said Matthew
Berk, an Internet analyst in New York. ``But they still
haven't figured out a way to make that pay off.''
Analysts said Lycos has struggled
to compete with Yahoo in the Web portal business and
Google in the Internet search business. But the experts
also said Lycos' search engine remains popular, and
it owns other key Internet businesses, such as the Matchmaker.com
and Quote.com Web sites.
Lycos cut 22 percent of its staff
in February while saying it would step up its focus
on subscription-based services.
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