Lycos has decided to buy Quote.com for $78.3 million in stock and an undisclosed amount for its stock option plan to boost its presence in the lucrative online financial information market.
The move follows a failed takeover of the Internet portal supplier earlier this year by USA Networks (see VNU Newswire, 12 February, 1999), after CMGI, one of its major shareholders, opposed the deal because it was unhappy with the offer price.
As a result, Lycos was faced with the difficult choice of whether to find another partner, with NBC and Bertelsmann being odds on favourites, or to fight its corner in the portal wars as an independent company. The latest deal would seem to indicate it has chosen the latter option, particularly following its purchase of Internet Music Distribution for about $49 million earlier this month.
Bob Davis, Lycos' president and chief executive, said: "This acquisition dramatically enhances our financial information offering - a key market segment we will focus on as we continue to grow the Lycos Network."
The deal is expected to close by the end of the year and Quote.com will retain its brandname and Web address, while becoming the main provider of financial information on Lycos' Web site.
Quote.com's headquarters in Mountain View, California, will remain intact, but there is expected to be a staff reshuffle.
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