Internet IPOs also remained hot as financial publication TheStreet.com Inc. made a solid debut.
Also, CNBC reported after the bell that the proposed merger between Lycos and USA Networks was off.
Internet.com’s Internet Stock Index jumped 19.69, or 3.44 percent, to 592.69, the Nasdaq Composite gained 40.21 to 2,566.60 and the Dow Jones industrial average climbed 18.90 to 11,026.15.
TheStreet.com (TSCM) soared 41 to 60 on its first day of trading. The company sold 5.5 million shares at 19 on Monday, raising $104.5 million. Volume was 13.4 million shares as the entire float changed hands more than twice.
Lycos Inc. (LCOS) lost 7 to 98-1/4. CNBC reported after the closing bell that Lycos and USA Networks would officially announce Wednesday that their merger was off. The deal would have created a venture with combined revenues of $1.5 billion.
Almost immediately after it was announced the deal ran into trouble. CMGI Inc., one of Lycos’ largest shareholders, was a vocal opponent of the merger and was actively looking for another buyout partner that it felt could give Lycos shareholders a better deal.
SportsLine USA Inc. (SPLN) added 12-3/16 to 43-1/16 after the company signed a deal with Reuters, Intel Corp. and MediaOne Ventures to create SportsLine Europe Ltd. The new subsidiary Tuesday purchased sportsweb.com, one of Europe’s leading sports site.
E-mail provider Critical Path Inc. (CPTH) fell 5-7/8 to 76-3/8. The company, which recently went public, filed to sell an additional 4 million shares.
Hitsgalore.com Inc. (HITT) plunged 10-3/4 to 9-3/8 after news reports said company founder Dorian Reed had been accused of cheating customers at a previous job last year. The company provides Internet marketing and search services.
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