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Lycos Buys Tripod in $58 Million Deal

Lycos announced today it acquired online community operator Tripod, Inc. in a deal valued at $58 million in stock.

Framingham, MA-based Lycos said the acquisition is aimed at adding a substantial Web-based community element to its offerings and increasing overall traffic to the search and navigation guide.

The company said the deal marks the merger of two of the top ten most visited Web sites, with Tripod boasting over 100 million page views per month and more than 1,500,000 member home pages.

According to Lycos, the Tripod acquisition also enables it to target the "highly desirable" 18-34 demographic, gain a new audience of about 4,000 new registered members per day, and deliver more targeted ad categories and vehicles to advertisers.

"The unbeatable combination of Lycos and Tripod exemplifies the evolution and growing importance of community on the Web," said Bob Davis, CEO of Lycos. "The end result of this new generation online service is a single place where all users can communicate, network, play and interact within communities that meet consumers' interests, as well as access the most popular free Internet services today."

Tripod becomes a wholly owned subsidiary of Lycos with Bo Peabody remaining as CEO of Tripod and Chairman Dick Sabot becoming a member of the Lycos Board of Directors.