By 1999, the Lycos network attracted more than 31 million visitors every month. “We were bigger than Yahoo.” The first hint of trouble came when Lycos announced a billion merger with Ticketmaster and the Home Shopping Network in February 1999.
Lycos investors complained the deal undervalued their shares, at a time when stocks of Internet companies were soaring.
Again, investors griped, and Lycos shares quickly lost 20 percent of their value.
The deal eventually closed with a value of just .5 billion.
In 2004, Terra sold Lycos to South Korea’s Daum Communications Corp.
Each can be used to control household items and communicate with smartphones and other computers.
“We had the biggest and best catalog until Google came along later.” Its first chief executive, Bob Davis, built a network of online services through acquisitions, including the game site Gamesville, dating service Matchmaker.com, and Tripod and Angelfire, where people could build their own websites.
“We were a very acquisitive company with a lot of businesses we brought in-house,” Davis recalled.
Lycos found a new suitor in a Spanish Internet company, Terra Networks.
In May 2000, the companies announced a stock-swap merger valued at .5 billion.