RUMOR MILL
"We are already an industry leader in a sector which is the epicenter of the industrial revolution.... Can I borrow a buck for a cup of coffee?"
—Juan Villalonga, Terra/Telefonica Chairman
Thursday, June 8, 2000
TERRA FIRM ON LYCOS
Not Earthshaking, But Still Pretty Big
Spanish Internet company Terra Networks approved an all-share acquisition of search engine Lycos Inc. The deal involves issuing 340.9 million shares of Terra stock and using those shares ($15.4 billion worth) to buy Lycos. Lycos' management has already okayed the takeover, though stockholders have yet to vote on it. That makes the combined Terra-Lycos the third largest Internet company in the world and first in terms of geographic spread.
Close to two-thirds of Terra stock is owned by Telefonica, which recently was the target of a new virus that attacked Web-accessible cell phones. The text message virus specifically railed against Telefonica's business practices and the planned purchase of Lycos.
The merged companies would create the third largest Internet company, according to Terra/Telefonica Chairman Juan Villalonga.
"We are already an industry leader in a sector which is the epicenter of the U.S. revolution," he said. "Hey, can I borrow a buck for a cup of coffee?"
Lycos stock was down 1 15/16 at presstime, but you know what they say. It's not over until Enrique Iglesias sings without accompaniment.
