Lycos Inc. today
acquired Wired Digital, Inc.
for $83 million in stock, in a deal the company said will expand the Lycos
Network’s reach to more than 40 percent of the Internet audience.
With the purchase, Lycos gains Wired Digital properties such as the Wired
search engine HotBot, which the company
said has 5 million unique visitors a month. Other Wired Digital properties
include Wired News, Web
Monkey, a Web developer guide, HotWired, Suck.com.
Terms of the acquisition call for Lycos to acquire Wired’s outstanding
capital stock for approximately $83 million in Lycos stock. Lycos will also
give Wired additional stock depending on the amount of cash Wired has on
hand on the closing date. The deal is subject to Wired shareholder
approval, and is expected to close by the end of the year.
Lycos expects little site overlap, saying the properties aim for
different audiences. According to research firm Media Metrix, only 20
percent of the visitors to Lycos and HotBot regularly check both search
engines. Lycos said HotBot attracts a
tech-savvy Netizens, while Lycos.com serves a broader audience.
Lycos said its network and Wired Digital have already implemented steps to
integrate each other’s services available on their properties, such as:
- Lycos’ Angelfire homepages and MailCity e-mail applications are now
being offered to all HotBot and Wired Digital users.
- Wired News is available on the headline page of Lycos.com.
- Wired Digital’s Webmonkey tutorials and resources for Web developers
will be available to Tripod and Lycos.com homepage communities.
- Lycos search will link to HotBot and Wired Digital properties through
top keyword searches.
“The acquisition of the industry-defining Wired Digital further fortifies
our position as a premier media company,” said Bob Davis, president and CEO
of Lycos, Inc. “In addition to gaining quality products and an incredibly
talented group of people, the pioneering spirit of Wired Digital, its
high-profile brands and added reach elevate the Lycos multi-brand network
strategy to a new level.”
“Joining forces with Lycos gives our products an incredible opportunity to
play on an even larger stage,” said Beth Vanderslice, president of Wired
Digital. “By moving Wired Digital into the Lycos Network, we’ll be reaching
a larger audience with an expanded array of quality content and services.
And together, this positions us to move into the number one spot on the Web.”
