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RealTime IT News

LookSmart, Telstra Resume Alliance Talks

Internet search engine LookSmart Ltd. reported Wednesday it has resumed partnership negotiations with Telstra Corp..

LookSmart , based in San Francisco, reported Tuesday that talks had been put on hold. The impasse now has been resolved with both companies agreeing to work towards a relationship. However, no details of a possible alliance were provided.

The Sydney Morning Herald reported in April that Telstra was considering taking a 10 percent stake in LookSmart and a 50 percent stake in its Australian operations.

On April 26, LookSmart said its first-quarter loss of US$13.8 million doubled from the same period last year because of higher sales, marketing and product development expenses. Its share price has since gained almost 3 percent.

Additionally, LookSmart Wednesday announced plans to spin off Redband Broadcasting, a U.S.-based Internet audio programming company, and dstore, an Australian online retailer.

"Redband and dstore are exciting new businesses but are not core to our search infrastructure model," said Evan Thornley, chairman and chief executive officer.