Lycos

Lycos, Inc.

A screenshot of Lycos.com
Type of business Subsidiary
Type of site
 Search Engine and Web Portal
Available in multilingual
Founded 1994 (1994)
Pittsburgh, Pennsylvania, U.S.
Headquarters Waltham, Massachusetts
Founder(s) Bob Davis
Key people Suresh Reddy, CEO of Ybrant Digital[1]
Revenue $24.76M (2009)[2]
Employees 72 in US (2007)
Parent Ybrant Digital[3]
Slogan(s) Simplify your Digital Life
Website www.lycos.com
Alexa rank Decrease 20,669 (March 2017)[4]
Registration optional
Launched April 13, 1995 (1995-04-13)
Current status active

Lycos, Inc., is a web search engine and web portal established in 1994, spun out of Carnegie Mellon University. Lycos also encompasses a network of email, webhosting, social networking, and entertainment websites.

Corporate history

Lycos is a university spin-off that began as a research project by Michael Loren Mauldin of Carnegie Mellon University's main Pittsburgh campus in 1994. Lycos Inc. was formed with approximately US $2 million in venture capital funding from CMGI. Bob Davis became the CEO and first employee of the new company in 1995, and concentrated on building the company into an advertising-supported web portal. Lycos enjoyed several years of growth during the 1990s and became the most visited online destination in the world in 1999, with a global presence in more than 40 countries.[5][6]

In 1996, the company completed the fastest initial public offering from inception to offering in NASDAQ history. In 1997, it became one of the first profitable internet businesses in the world. In 1998, Lycos paid $58 million for Tripod.com in an attempt to "break into the portal market."[7] Over the course of the next few years, Lycos acquired nearly two dozen internet brands including Gamesville, WhoWhere, Wired News (eventually sold to Wired), Quote.com, Angelfire, Matchmaker.com, and RagingBull.com.

Lycos Europe was a joint venture between Lycos and the Bertelsmann transnational media corporation, but it has always been a distinct corporate entity. Although Lycos Europe remains the largest of Lycos's overseas ventures, several other Lycos subsidiaries also entered into joint venture agreements including Lycos Canada, Lycos Korea and Lycos Asia.[8]

Near the peak of the internet bubble on May 16, 2000, Lycos announced its intent to be acquired by Terra Networks, the internet arm of the Spanish telecommunications giant Telefónica, for $12.5 billion.[9] The acquisition price represented a return of nearly 3000 times the company's initial venture capital investment and about 20 times its initial public offering valuation. The transaction closed in October 2000 and the merged company was renamed Terra Lycos, although the Lycos brand continued to be used in the United States. Overseas, the company continued to be known as Terra Networks.

On August 2, 2004, Terra announced that it was selling Lycos to Seoul, South Korea-based Daum Communications Corporation, now Kakao, for $95.4 million in cash, less than 2% of Terra's initial multibillion-dollar investment. In October 2004, the transaction closed for sale of half of the business and the company name was changed back to Lycos Inc. The remaining Terra half was reacquired by Telefónica.

Under new ownership, Lycos began to refocus its strategy. In 2005, the company moved away from a search-centric portal and toward a community destination for broadband entertainment content. With a new management team in place, Lycos also began divesting properties that were not core to its new strategy. In July 2006, Wired News, which had been part of Lycos since the purchase of Wired Digital in 1998, was sold to Condé Nast Publications and re-merged with Wired Magazine. The Lycos Finance division, best known for Quote.com and RagingBull.com, was sold to FT Interactive Data Corporation in February 2006, while its online dating site, Matchmaker.com, was sold to Date.com. In 2006, Lycos regained ownership of the Lycos trademark from Carnegie Mellon University.

During 2006, Lycos introduced several media services, including Lycos Phone which combined video chat, real-time video on demand, and an MP3 player.[10] In November 2006, Lycos began to roll out applications centered on social media, including its video application, Lycos Cinema, that featured simultaneous watch and chat functionality.[11] In February 2007, Lycos MIX was launched, allowing users to pull video clips from YouTube, Google Video, Yahoo! Video and MySpace Video. Lycos MIX also allowed users to create playlists where other users could add video comments and chat in real-time.[12]

As part of a corporate restructuring to focus on mobile, social networks and location-based services, Daum sold Lycos for $36 million in August 2010 to Ybrant Digital, an internet marketing company based in Hyderabad, India.[3][13][14]

In May 2012 Lycos announced the appointment of former employee Rob Balazy as CEO.[15]

Due to a disagreement over the price of Lycos, Daum and Ybrant went to court, which backed Daum's claims. This prompted Daum in 2016 to seize Lycos's shares back from Ybrant.[16]

Lycos, Inc.; currently according to Boston Better Business Bureau holds & has maintained an "F" rating due to large numbers of customer complaints and Lycos, Inc. failure to respond to customer complaints, as well as fraudulent use of the BBB's logo on Tripod's payment page. Lycos, Angelfire and Tripod are not accredited by the Better Business Bureau as they claimed and is substantiated by the Better Business Bureau on Lycos' company listing.[17]

Lycos Network sites

Lycos-branded sites

Former Lycos sites

References

  1. ↑ "Management Team". ybrantdigital.com. Retrieved 14 February 2015.
  2. ↑ Pahwa, Nikhil (August 16, 2010). "Lycos Sold To India’s Ybrant Digital For $36 Million". MediaNama. India. Retrieved August 17, 2010.
  3. 1 2 "Ybrant Digital Buys Lycos for $36 Million". BusinessWire. Comtex News Network, Inc. August 16, 2010. Retrieved August 16, 2010.
  4. ↑ "Lycos.com Site Info". Alexa Internet. Retrieved 2017-03-31.
  5. ↑ Scott, Virginia A. (2008). Google. Greenwood Publishing Group.
  6. ↑ Worlock, David (August 20, 2010). "Paradigm Lost". Retrieved April 14, 2013.
  7. ↑ Price, Christopher (December 15, 1998). "Gateway to the future: Christopher Price gives the lowdown on the sites which offer not only a way into the worldwide web but so much more". Financial Times. p. 16.
  8. ↑ "Lycos Asia seeks speed and performance". ZDNet. January 17, 2001.
  9. ↑ Kleinbard, David (May 16, 2000). "Lycos in $12.5B deal". CNN Money.
  10. ↑ "Lycos, Jajah Launch Internet Phone Call Services Today". Associated Press. Los Angeles Times. March 27, 2006.
  11. ↑ BYLUND, ANDERS (November 13, 2006). "Lycos Cinema ties chat to movies; content library, technical details disappoint". Ars Technica.
  12. ↑ Lowensohn, Josh (February 8, 2007). "Lycos Mix fails to stir". CNET.
  13. ↑ "Ybrant Digital Buys Lycos for $36 Million" (Press release). Business Wire. August 16, 2010.
  14. ↑ Reisinger, Don (August 16, 2010). "Lycos is alive, acquired for $36 million". CNET.
  15. ↑ Reidy, Chris (May 7, 2012). "Rob Balazy appointed CEO of Lycos". Boston Globe.
  16. ↑ Brickley, Peggy (March 15, 2016). "Ybrant Unit Files for Bankruptcy Over Price on Lycos Deal". Wall Street Journal.(subscription required)
  17. ↑ BBB: Lycos
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