graphic
News > Technology
Lycos founder to fight merger
March 9, 1999: 7:34 a.m. ET

Wetherell steps down from Lycos board to counter USA Networks merger
graphic
graphic graphic
graphic
LONDON (CNNfn) - David S. Wetherell, chief executive of CMGI, resigned his board position at Lycos Tuesday in order to oppose the Internet portal company's proposed merger with USA Networks.
     The CMGI (CMGI) chief is aiming to use the company's 20 percent stake in Lycos (LCOS), the largest, single shareholding in the company, to try to find other possible suitors or keep the company independent.
     Wetherell, one of Lycos' founders, in a statement called the USA-Lycos deal "inadequate" for Lycos shareholders.
     Wetherell took the decision to spoil the bid, after failing to persuade USA Network's chairman Barry Diller to re-negotiate the original deal.
     Lycos' shares have slumped 35 percent since the deal was announced in early February and Wetherell has refused to vote in favor of the merger in light of the depressed share price.
     Wetherell said he hopes to explore other options for Lycos, including the keeping the company independent.
     CMGI's chief may seek to enlist the support of other big shareholders to keep Lycos independent. Other investors have also been disappointed with the complicated deal, which offered Lycos shareholders no more than a 2 percent premium at the time of the offer. This is way below the usual high multiples paid for Internet companies.
     Lycos shares closed at 83-7/8, down 2-3/16 on Nasdaq Monday. USA Networks (USAI)shares ended up 7/8 at 38-1/2. Back to top

  RELATED STORIES

Lycos chief bangs the drum - Feb. 26, 1999

Investor balks at Lycos deal - Feb. 11, 1999

  RELATED SITES

Lycos

USA Networks

CMGI


Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney




graphic

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.