Areas the company is looking at include finance, travel, real estate and entertainment.

At a shareholders meeting, Terra Lycos chief Joaquim Agut declined to identify takeover targets. Previous reports mentioned CNET and Earthlink, however, the company said there no plans to buy the online news network nor Internet service provider.

Terra Lycos, formed last year by the merger of Terra Networks, of Madrid, and Lycos, of Waltham, Mass., is sitting on $2.14 billion in cash and believes that with smart pickups it can compete with AOL and Microsoft. Terra Lycos maintains its U.S. headquarters in Waltham.

While not an acquisition, Terra Lycos added to its lineup yesterday by signing a content deal with the San Jose, Calif., auction site eBay.

Terra Lycos will put eBay's listings and categories onto the popular Lycos Auctions Web site. Financial were not disclosed.

"The Lycos Network has tremendous reach and opens another door for eBay," said Jeff Jordon, an eBay vice president.

eBay said the deal will make it easier for the tens of millions of Lycos users access to eBay's millions of listings in more than 9,000 categories. Additionally, eBay will advertise on the Lycos sites.

The agreement should also boost eBay's quest to snare the online auction space away from competitors Amazon.com and Yahoo.

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"Adding eBay's breadth to Lycos Auctions creates a must-visit destination that keeps our customers in our network while generating additional revenue for Terra Lycos," said Mark Stoever, a Terra Lycos vice president.

Shares of TRLY opened up 0.12, or 2 percent to 8.07 this morning. EBAY was up fractionally to 64.802.