Lycos Europe to Sign Off

by Ken Schachter on 26 November 2008, 10:50

Categories: Archives - General news - Media - Internet - Finance
Topics: google , internet , yahoo , portal , bertelsmann , Telefonica , Netherlands , Lycos Europe

 
After failing to find a buyer, online portal Lycos Europe said Wednesday it is planning to liquidate and distribute 50 million euros ($64.6 million) to its shareholders by year’s end.

Facing stiff headwinds from rivals Yahoo and Google, Lycos Europe, jointly controlled by German media giant Bertelsmann and Spanish telecommunications provider Telefonica, had been seeking a buyer or merger partner.

In a statement, Lycos Europe, based in Haarlem, the Netherlands, said its management and supervisory boards had decided to try to sell its domains, Danish portal and shopping units and to shut down its portal and web-hosting operations.

The moves are subject to the approval of shareholders at the annual meeting scheduled for December 12.

In trading on Germany’s Xetra exchange, shares of Lycos Europe were flat at .24 euros.

In October, Lycos Europe, operated independently from U.S.-based Lycos Inc., posted a net loss of $22.1 million on revenue of  $60.6 million through the first nine months of 2008 versus net income of  $57 million on revenue of $75.5 million in the 2007 period. Gross margins shrank to 46 percent compared to the prior year’s 54 percent.