Lycos/USA Networks deal dead

The proposed three-way merger between Lycos, Ticketmaster and USA Networks has been called off, according to sources. The three companies planned to join together to form a major media and e-commerce force but the deal appears to have fallen down on financial complications.

Major Lycos stock holder CMGI claimed late yesterday that it would vote against the merger, at least in the short term. CMGI spokeswoman Katherine Taylor said that in the long term, the company was actually quite up for the deal.

Robert Davis, president and CEO of Lycos is currently in the UK and plans to comment on the situation later today.