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To: Richard K. who wrote (1478)	4/16/1999 1:21:00 PM
From: TC5187	Read Replies (1) \| Respond to of 1530

Lycos Sees Revenues More Than Doubling WALTHAM, Mass. (Reuters) - Lycos Inc. (Nasdaq:LCOS - news) said Friday it expected to report third-quarter earnings in line with Wall Street's expectations, as the company continues to post solid revenue growth. The Internet portal company said it expected its revenues to more than double for its fiscal year that ends July 31. Media mogul Barry Diller's USA Networks Inc. (Nasdaq:USAI - news) in February agreed to buy Lycos in a deal that at the time was valued at between $17 billion and $18 billion. Shares of Lycos closed Thursday at $94.56 on the Nasdaq, down $3.56 from the previous day's close. Analysts expect Lycos to post a loss of three cents a share for the third quarter of its fiscal year, according to First Call Corp., which tracks corporate earnings. ''Given the slowing growth announced by several other companies in the portal space, we are extremely pleased with the strength of our business as we continue to be the fastest growing company in our industry,'' Lycos' Chief Financial Officer Ted Philip said in a statement. Philip said Lycos' revenues were driven by solid gains in both advertising and commerce sales. The company added that it expected to close on its acquisition of Wired Ventures, a print and online publisher, in early June. The much talked-about merger of Lycos and USA Networks is expected to create an electronic commerce giant with local content, auctions and a direct commerce business. Lycos is mostly known as a search engine and a popular network of Internet sites. Under the terms of the proposed merger, USA Networks would control 61.5 percent of the new company, while Lycos shareholders would retain 30 percent. The USA-controlled Ticketmaster Online/CitySearch Inc. would own the remaining 8.5 percent. Since the deal was announced, though, Lycos' share price has fallen amid investors' fears that the merger does not appropriately value Lycos. Internet venture fund CMGI Inc., which owns about 18.5 percent of Lycos, opposes the sale of the company to USA, saying it shortchanges Lycos shareholders. To protest the merger, CMGI's Chief Executive David Wetherall stepped down from Lycos' board in early March. CMGI is expected to vote against the deal at a shareholder meeting scheduled to take place in July. Like other Internet stocks, Lycos shares have been volatile recently. Disappointing news from chip maker Intel Corp. (Nasdaq:INTC - news) and the downgrading by an analyst of Web media company Infoseek Inc. triggered a sell-off in Internet stocks.