Internet Market Close Report for 1999.02.09
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Investors voted with their feet on the proposed merger of USA Networks-Ticketmaster/Citysearch with Lycos (NASDAQ:LCOS) in a new firm to be dubbed USA/Lycos Interactive Networks (USA/Lycos). The stampede in LCOS shares drives them down 26% to $94.25 per share. Ticketmaster-Citysearch shares also tumble, off 26% to $42.25 per share. The only gainer of the three is Barry Diller's USA Networks (NASDAQ:USAI), which runs cable programming. USAI shares pop 9.7% to $41.625 per share.
Both Lycos and USA Networks play up the combined revenue of the firms, $1.5 billion annually. Pro forma the merger USAi will own 61.5%, Lycos shareholders will own 30% and TMCS shareholders other than USAi will own 8.5% of the USA/Lycos equity (more on the merger in tomorrow's Internet Stock Report).
The merger hype with Lycos now over, ISDEX takes another hammering as investors take profits and shy away from some of the buying frenzy that drove Internet shares earlier this year. The selloff is marketwide as the bears in the bunch trigger a pullback. ISDEX is down 4.7% and NASDAQ not far behind.
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