RealTime IT News

Internet Market Close Report for 1998.10.06

  06-Oct-98 % change point change
ISDEX 94.52 -2.34% -2.26
NASDAQ 1,510.83 -1.68% -25.86
DJIA 7,750.70 0.32% 24.46

  • Lycos (NASDAQ:LCOS) agrees to acquire Wired Digital, better known as "HotWired" and "HotBot" to users. Terms: $83 million stock. At this point Lycos' aggressive buying spree of late could put the firm ahead in traffic but behind in ability to digest the deals. We expect Wired Digital may not be an easy assimilation, based on the diverse cultures of Lycos and Wired Digital.

  • barnesandnoble.com (pending IPO) received a $200 million investment by German media giant Bertelsmann for a 50% stake in the Web bookselling division of Barnes and Noble (NYSE:BKS). The value puts it in line with our valuation for the firm made here recently. Unless Amazon.com (NASDAQ:AMZN) stumbles, however, we don't expect barnesandnoble.com to be the leader on the Web for books, music or video sales--even with Bertelsmann's cash. The key is incentive: barnesandnoble.com employees don't have stock options yet. No stock options = no motivation to the level of Amazon's crew which works seemingly 24/7 to grow their net worth.

  • Network Solutions (NASDAQ:NSOL) has until June 1999 to develop a plan to let other firms register domains. Network Solutions will also be part of a non-profit group to manage the domain proliferation.

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