Lycos teams up with cable giant and Ticketmaster

Online portal Lycos is set to merge with Ticketmaster Online-Citysearch (TMCS) and the ecommerce and Internet assets of USA Networks (USAi), in a huge stock-swap deal. USAi will contribute its Home Shopping Network, Ticketmaster and Internet Shopping Network/First Auction.

The company - to be known as USA/Lycos Interactive Networks - will reach 30 million Internet users through its network of Web sites and 70 million cable TV users.

The companies claim USA/Lycos will be able to handle over one million phone transactions and 200,000 shipments per day, alongside one million online transactions every quarter, including real-time online auctions.

Under the terms of the agreement USAi will own 61.5 per cent of the new company, Lycos shareholders will own 30 per cent and TMCS 8.5 per cent.

It is hoped the mix of advertising, commerce and promotional opportunities across TV, online and Ticketmaster outlets will attract partners and revenue. It is estimated that - measured on past performance - USA/Lycos will have a combined revenue of more than $1.5bn.

If the deal gains shareholder and regulatory approval the companies expect it to be completed in the second quarter 1999.