Lycos, Terra alliance, merger talks continue

Spain's Terra Networks SA is in serious discussions to acquire Lycos Inc. (lcos) for at least $10 billion in stock, though there is a significant chance the two sides won't reach a deal, according to people familiar with the matter.

If the two sides do come to terms on a deal, it would create a global Internet portal. However, Terra and Lycos could simply form an Internet alliance, people familiar with the situation warned. Indeed, initial discussions between the two sides had centered on an alliance but then progressed to include acquisition talks. Full story to follow. -- Wall Street Journal