The Web Report - Lycos
by: tradingday
30983 of 30983
The Web Report – Volume 2, Issue #19
BANCBOSTON ROBERTSON STEPHENS
Keith E. Benjamin, CFA - 415-693-3285
STRATEGIC LANDSCAPE SHIFTING TO HIGHLIGHT NEW
LEADERS – As expected,
the
Lycos, Ticketmaster Online – CitySearch, USA deal was cancelled,
effectively unlocking value at Lycos and Ticketmaster, in our view. We
expect further focus on Lycos next week on Tuesday, May 18th, when it
reports its quarterly results. While the stock has already reacted
positively to a partial pre-announcement, including strong traffic
growth and securing $200 million in new commerce deals, we believe it
can return to its highs. We would be more aggressive on Ticketmaster's
stock at these levels, as it seems to remain in the shadows of investor
attention to Lycos, while its business continues to make progress well
past our prior estimates. We expect both to show gains as independent
companies, potentially making more acquisitions, with buyouts possible
eventually.
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