FYI
USA's Diller says not considering new Lycos =2
The agreement which involves Lycos, USA's Home Shopping
Network, Internet Shopping Network/First Auction units and
Ticketmaster Online-CitySearch Inc. <TMCS.O>., was announced
last month. USA has a majority interest in Tickmaster.
Lycos shares fell sharply amid market confusion and
disappointment over the terms of the deal.
Further CMGI Inc <CMGI.O>, a major Lycos shareholder, said
in February that while it was "generally supportive" of Lycos"
merger with USA Networks, it "reserves the right to reassess it
position."
Under the agreement, USA Networks will control 61.5 percent
of the new company, Lycos shareholders will hold 30 percent and
Ticketmaster holders will own 8.5 percent.
"I think that the market overreacted," he said "I think
that Lycos (stock close) clearly had accelerated so much in the
previous month, and I think it accelerated because people said
'You know what? This thing is going to get sold just like
Excite got sold to AtHome with a big premium.'"
AtHome Corp. <ATHM.O>, which delivers high-speed Internet
programming over cable television networks, agreed in January
to acquire Excite Inc <XCIT.O>, a leading Internet destination,
in a stock swap then valued at $6.7 billion.
Diller, referring to investors who were anticipating a
high-premium Lycos takeover, said, "Their expectations were
dashed."
"They didn't look at the transaction. It's our fault in a
sense that we should have more carefully explained" the Lycos
transaction, he said.
"I have yet to be in a room with anybody where we have
actually explained the transaction that people don't say, 'God,
this makes real good sense'."
"There is a shareholder vote in three, four or five months.
We have a lot of time to explain what we are doing, and we are
confident that people will get it."
In late morning Nasdaq trade Lycos shares were 89-5/8, up
1-1/16 from Monday's close. USA Networks shares were trading at
39, off 1/16 on the day. CMGI was trading at 139-7/8, up 6-1/4
from Monday's close. Ticketmaster shares were at 37-1/2, down
1/4 on the day.
REUTERS
Rtr 12:12 03-02-99
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