Lycos acquires Tripod for $58M

Lycos Inc. has acquired Tripod Inc., a Web community with almost one million members, in a stock deal worth $58 million.

Lycos (LCOS) officials said the deal makes their site the fifth most visited site on the web, and "creates a new generation online service."

"Overnight, the unification of two great companies moves us to the very forefront of this industry," Lycos CEO Bob Davis said in a release. "This powerful user destination model will greatly benefit members, advertisers and commerce partners like no other media network on the Web."

Specifically, the companies said the deal increases unduplicated consumer reach by 48 percent. It also gives Lycos access to the key 18-34 year-old demographic and gives its advertisers more inventory of targeted ad categories and vehicles. The deal will allow users to publish a free homepage and will link Lycos searches to other homepages created by Tripod members.

Under the terms of the deal Tripod becomes a wholly-owned subsidiary of Lycos with Bo Peabody remaining as CEO of Tripod. Dick Sabot, the Tripod chairman, becomes a member of Lycos' board of directors.