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WEBDEX: Value Per Unique User Drops 2.1 Percent

Our analysis of the slew of mergers announced in the Internet space among the top 10 Web firms shows that the hunters offered an average $271 per unique user across the four deals. That contrasts with the $281 average for the top 10 sites in general.

On the high end in the urge to merger arena is @Home's $6.7 billion stock swap for Excite at $404 per user. Low-end looks like Yahoo's $3.6 billion stock swap for GeoCities. USA Network's $6.6 billion bid for Lycos seems on par with the group, leading us to believe there's a chance 50-50 that this could go through.

Merging Mania Value Per Users

HunterTargetOffer (mil.)Offer Per Unique User
@HomeExcite $ 6,700 $ 404.88
AOLNetscape $ 4,200 $ 239.34
USA NetworksLycos $ 6,600 $ 250.19
YahooGeoCities $ 3,600 $ 189.70
 total $ 21,100 $1,084.12
 average $ 5,275 $ 271.03

Along with a softer (or more sane) Internet stock market the value per unique user for the top 10 Web sites in the world lost a few points the past week, despite a slew of mergers that brought valuation out. WEBDEX shows a 2.1% fallout since February 10.

The defining deal now affecting Internet stocks, we think, is the FCC-approved $32 billion AT&T-TCI merger. We believe this redraws the Internet landscape, especially since both firms have Internet interests.

First, AT&T (NYSE:T) provides basic twisted pair dialup to the home through its WorldNet service, as well as backbone services to businesses.

WEBDEX, Web site User Value Index

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