Lycos Europe To Shut Down After Failing To Find Buyer
This story was written by Robert Andrews.
It's the end of the road. After putting itself on the auction block in April, Lycos Europe has finally conceded what had become increasingly clear - no-one wants to buy the ailing portal. So it confirmed Wednesday morning it will wind up its portal and its web hosting activities. It's now about asset stripping - the company said it still wants to sell its domain names, its Danish business and its shopping sites. As a result, Lycos Europe will give back 50 million to its shareholders. All subject to a December 12 shareholders meeting. As the Web 2.0 fraternity might say, "epic fail". Release.
A JV between Telefonica's Terra internet arm, which owns 32 perent, and Bertelsmann, Lycos Europe has always been a separate company to America's Lycos Inc, but both sites have suffered since they were the web's most-visited back in the portal hey-days of 1999. The company started a strategic review in April but, though CEO and Bertelsmann family heir Christoph Mohn, who himself owns 12 percent, suggested AOL (NYSE: TWX) and German ad net Tomorrow Focus were keen to bid around 200 million, it's clear the sale process was flailing. Full story over at paidContent:UK
By Robert Andrews