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Technology Stocks : Lycos

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To: Joe E. who wrote (1397)1/21/1999 9:19:00 AM
From: AJ Berger  Read Replies (1) of 2439
 
I think we'd do better with an outright buyer

if Bertelsmann gives $1bil for 20% of Lycos,
that would value it at $5bil / 43mil shares
would only bring us to $116 a share, and way
short of it's valuation compared to XCIT or
YHOO. Besides, Lycos has plenty of cash and
does not need Bertelsmann's money. It kind
of amazes me to see GeoCities being mentioned
as another buyout candidate as their marketcap
to sales ratio is twice that of Yahoo!
Who would want to overpay for that one.
Lycos ratio is slightly higher than XCIT,
and a third of Yahoo's, making it a much
more attractive deal at these prices.
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