RealTime IT News

CMGI Chief Quits Lycos Board

David Wetherell, chief executive officer of CMGI Inc., Tuesday resigned from the board of search engine Lycos Inc.

Wetherell resigned in protest of Lycos' decision in early February to merge with Ticketmaster Citysearch. CMGI is the largest Lycos shareholder.

"After further consideration, it is my opinion that the terms of the USA/Lycos transaction are inadequate for Lycos shareholders. As such, I am resigning from the Lycos board in order to be free to explore the best options available to Lycos shareholders, including the possibility of Lycos remaining independent," he said.

The deal is expected to close in the second quarter. Once it is finalized, USA Networks will control 61.5 percent of the combined company, Lycos shareholders 30 percent and Ticketmaster-Citysearch shareholders 8.5 percent. The merger would create an electronic commerce and entertaiment company valued at between $17 billion and $18 billion.

While Lycos' stock has fallen in recent sessions, CMGI shares are now trading at a record high. CMGI shares soared 31 percent on Monday.