Lycos Acquires Tripod in $58 Million Deal

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.

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