New portal to be called Terra Lycos

The combination of Lycos and Terra Networks will be called Terra Lycos Inc., according to people familiar with the decision. Bob Davis, the president and CEO of Lycos, will be CEO of the combined firm. Juan Villalonga, chairman and CEO of Telefonica, the Spanish phone giant that owns Terra Networks, will serve as chairman, the sources said. As part of the deal, Telefonica has committed to underwrite a $2 billion rights offering by Terra before the merger closes. Sources said Terra Lycos expects to have more than $3 billion in cash after the offering. -- Charles Cooper, ZDNN