Lycos Buys Tripod for $58 Million (1998)

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February 4, 1998

By BLOOMBERG NEWS

RAMINGHAM, Mass. — Lycos Inc. said Tuesday that it had acquired the closely held Tripod Inc. for $58 million in stock, adding an online community to its Internet directory service.

Tripod, based in Williamstown, Mass., is a Web site that offers members free publishing tools to create their own Web sites and content on topics like media, work, money, health and sports. Lycos said the acquisition adds almost one million members and aims at the desirable age group of 18- to 34-year-olds. Lycos said the purchase vaults it to the fifth-most visited Web site. Lycos is following in the footsteps of rival directories Yahoo! Inc. and Excite Inc., which both added features such as chat and e-mail to create online communities. By buying Tripod to enhance its services and attract more users, Lycos is hoping to bring in more advertising and electronic-commerce revenue.

"This new-generation online service is a single place where all users can communicate, network, play and interact within communities that meet customers' interests as well as access the most popular free Internet services today," said Bob Davis, Lycos chief executive, in a statement.

The shares of Lycos, which is based in Framingham, Mass., rose $1.125, to $42.125, in Nasdaq trading.

The company, which posted its first-ever profitable quarter in the three months ended Oct. 31, said Tripod will become a wholly owned unit. Dick Sabot, Tripod chairman, will become a member of Lycos's board.

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