Bob Davis, founder of internet giant Lycos, will step down as CEO of Terra Lycos in a move widely depicted as the result of a power struggle with Terra chief Joaquim Agut.

Davis will continue as non-executive vice president to the administrative board of Terra Lycos, the merged firm which resulted when Lycos was bought out last year for $12.5bn by Spanish internet company Terra, a subsidiary of telecoms conglom Telefonica.

Lycos' Ted Philip has also stepped down from his post as chief financial officer of Terra Lycos to become senior vice president of strategic planning.

The announcements are widely seen as a shifting of power at Terra Lycos back to Terra's Spanish roots.

Terra Lycos also unveiled its year-end financial results, highlighted by revenues of $526m and before-tax losses of $348m.