RealTime IT News

Internet Market Close Report for 1999.02.09

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.

  09-Feb-99 point change % change
ISDEX 285.37 -15.46 -4.70%
NASDAQ 2,310.79 -94.13 -3.91%
DJIA 9,133.03 -158.08 -1.70%

  • CNET (NASDAQ:CNET) shares tumble 20% to $98.50 after it inks a deal to pay AOL $14.5 million to provide AOL with a tech buyer guide. We're not sure how the deal benefits CNET, especially as the new era of shopping agents begins to take over the buying experience. Bots don't care where the info is, they'll find it and deliver it to the user.

  • Netegrity (NASDAQ:NETE) reports $1.67 million fourth-quarter revenue, up from $1.44 million 4Q97. Net loss reaches $1.2 million vs. $1.3 million net loss 4Q97. For the year ended December 31, 1998, revenue is $4.79 million vs. $4.73 million in 1997 while net loss is $5.22 million vs. $5.25 million net loss in 1997.

  • Exodus (NASDAQ:EXDS), the web-hosting provider, agrees to acquire American Information Systems, a Chicago Internet web hosting provider. Terms not disclosed.