RealTime IT News

Lycos Acquires Tripod in $58 Million Deal

Spurned from acquiring GeoCities, probably due to its high asking price, Lycos went out and bought another Web community company, Tripod, for $58 million stock.

Our analysis shows the deal values Tripod's 1.5 million "members" at $38.67 each or 58 cents per monthly page view.

Lycos Buys Tripod. How Much?  
Members (millions) 1.5
Page views/month (millions) 100
Deal value (millions) $ 58
Deal value/member $ 38.67
Deal value/page view $ 0.58
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The acquisition highlights the growing trend to consolidate traffic on the Internet to a few major hubs, which at first glance may be the antithesis of what the Internet is all about, the many-to-many paradigm.

But the move to create media franchises on the Web necessitates putting people and content in the same space (or so the logic goes).

Yahoo! recently bought a stake in the largest Web community builder GeoCities and acquired Four11 in similar moves.