Ybrant Acquires Lycos For 35 Million $ – Good Deal?

Ybrant Digital the  digital marketing solutions provider today announced the signing of the stock purchase agreement to acquire Lycos Inc.  Lycos.com is owned by Daum Communications of Korea Lycos was at its height of popularity during the internet boom period of 1999 and was one of the few well known search services of its time.

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Lycos is one of the top 1500 sites in the world. With US and India among the top 5 countries that has visitors to the web portal. This seems like a good buy given that Lycos in 2009 grossed 25 million $. Lycos consistently averages 12 – 15 million monthly unique visitors in the U.S. But for Daum Communications of Korea this has been a bitter exit as it acquired the troubled Lycos for $95 million in 2004 from Terra Networks of Spain hoping to change its fortunes.

With this acquisition Ybrant will add to its already existing ad impressions. Ybrant currently serves 20 billion impressions a month and serves leading brands such as SAP, Porsche, Ford, UPS, and Swissair. This would give a shot in the arm for US and India impressions.

One Response to “Ybrant Acquires Lycos For 35 Million $ – Good Deal?”

  1. jmobby
    August 16, 2010 at 8:20 pm #

    This is a very good deal for both parties. It should be noted that what Daum sold is a fraction of what it bought in 2004 and thus the purchase price is not really 38% of the original price. Over the last 5 years, Daum was able to sell off many non-core business divisions of Lycos and therefore recoup a lot of its initial investment. It sold Lycos’ Quote.com (and ragingbull.com) and Wired.com businesses for a combined $55 million in 2006. It also sold Matchmaker.com, Getrelevant.com and Webmonkey.com in smaller transactions. Thus, all told Daum has now sold various parts of Lycos and Lycos itself for a around the same amount of money it spent to acquire Lycos in 2004. if anything, Lycos itself has held its value since 2004, and was profitable in 2009 and will be very profitable in 2010. Not only has Lycos survived, it is now innovating again. People should look at tripod.com. It’s been completely revamped, and is now using Lycos’ proprietary webon technology for web-building.

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