Terra Networks, Lycos seen in talks cbs.marketwatch.com
MADRID (CBS.MW) -- Terra Networks SA, the biggest Internet access provider in the Spanish-speaking world, is in talks with U.S. portal Lycos Inc. which could lead to a global alliance or even a full merger, according to a Spanish business newspaper.
Spain?s business daily Expansion reported that talks have been taking place in New York for several weeks. Terra Networks (TRRA: news, msgs) officials weren?t immediately available for comment.
Terra Networks is a subsidiary of Telefonica SA (TEF: news, msgs), Spain?s biggest telecom company. Back in March, the El Pais newspaper reported that Telefonica was in talks with Lycos (LCOS: news, msgs) about taking a stake in the U.S. company.
Telefonica declined to comment on that report. See full story.
A merger of Lycos and Terra Networks would create one of the world?s biggest Internet companies. The Spanish ISP ranks No. 2 in Europe in terms of market value behind Deutsche Telekom AG?s (DT: news, msgs) T-Online. It?s a major player in Latin America as well as being Spain?s leading ISP.
With a market value of $15.63 billion Terra Networks is about three times the size of Lycos, which is worth $5.94 billion.
In U.S. trading Thursday shares of Lycos jumped 8 5/8, or 19 percent, to close at 54. Terra added 3 7/8, or 7.3 percent, to 56 ó. According to news wire reports, trading in Terra Networks shares in Madrid was suspended Friday morning. |
