Spurned from acquiring GeoCities, probably due to its high asking price,
Lycos went out and bought another Web community company, Tripod, for $58
million stock.
Our analysis shows the deal values Tripod’s 1.5 million
“members” at $38.67 each or 58 cents per monthly page view.
Lycos Buys Tripod. How Much? |
|
Members (millions) |
1.5 |
Page views/month (millions) |
100 |
Deal value (millions) |
$ 58 |
Deal value/member |
$ 38.67 |
Deal value/page view |
$ 0.58 |
© 1998 Mecklermedia |
The acquisition highlights the growing trend to consolidate traffic on the
Internet to a few major hubs, which at first glance may be the antithesis
of what the Internet is all about, the many-to-many paradigm.
But the move to create media franchises on the Web necessitates putting
people and content in the same space (or so the logic goes).
Yahoo! recently bought a stake in the largest Web community builder
GeoCities and acquired Four11 in similar moves.