March 24, 1999 15:20
Diller Growing Tired Of Lycos Day-Trading "Gnats" (USAI) - Report
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(NewsTraders.com)-- USA Networks (USAI) Chairman Barry Diller today blamed his company's woes in acquiring Lycos (LCOS) on ignorant day traders, according to Wired News.
Highlights:
- "Before we could get the transaction out there, people looked and saw the stock drop and said 'Oh my god,'" he told an audience of CEOs at a technology conference in Scottsdale, Ariz.
- "You are in a world where 55% of the stock is in the hands of people who have the patience of gnats…They are in and out and in and out," Diller said.
- "People thought there was going to be a premium. One could argue that the premium was contained within [the proposed deal]. Mr. Wetherall, not known for his patience or fidelity, literally after the second day [after the deal was announced] came out and said 'I'm not sure if this is a good deal,'" said Diller.
- CMGI (CMGI) boss David Wetherall resigned from his Lycos board seat to protest the deal. CMGI holds an 18.5% stake in Lycos.
- "In addition to its curiousness, as the facts came out, it was shocking since he was selling stock in the company below the amount that it was dropping to," the USA chairman told the audience.
- In addition, Diller revealed he is trying to concentrate on an initiative where the combined media and Internet empire would be able to deliver products ordered before 4 p.m. the next day.
Copyright 1999 NewsTraders Inc. All Rights Reserved 15:19 Wednesday, March 24, 1999
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