South Korean internet portal Daum has bought Lycos Inc for US$95 million (€79 million) – considerably less than the US$12.5 billion (€10.4 billion) in shares its Spanish owner Terra paid for it just four years ago. In fact, it’s less than 1% of the original price.
Even April this year, the price sought was nearer $170 million (€140 million).
Daum’s new acquisition gives it a subscriber base of 170,000 paid users and a 6% slice of the US banner advertising market. Lycos also features Wired News, the stock market information service Quote and thousands of user created Tripod websites.
Daum president Lee Jae-Woong said that the acquisition of Lycos Inc meant that they were now ready to embark on a global initiative: “a springboard for our company to venture into the US Internet market and become a global player.”
Their new purchase might give Daum a foothold in the US internet market, but Lycos Inc has been loss-making for some time now, and it’s a very tough market out there – they’ll be facing stiff competition form a newly revitalised MSN and a cash-rich Google.