Terra, the Spanish and Portuguese-speaking world's leading internet portal majority owned by telecoms giant Telefonica, has closed a deal to acquire multi-brand network Lycos in a stock-for-stock transaction worth $12.5bn.
The new company, dubbed Terra Lycos, has also closed a $1bn dollar, five-year commerce deal with European media giant Bertelsmann, which maintains an existing joint venture with Lycos called Lycos Europe. The deal will give Terra Lycos preferred access to Bertelsmann content including books, music, TV, film and other media.
Terra Lycos will also have access to all of Telefonica's media content, including product from the recently bought-out Endemol Entertainment.
Terra Lycos will further own 49% of a new wireless joint venture with Telefonica, giving the new internet giant access to Telefonica's extensive cable, fixed line, broadband, satellite and wireless networks.
Terra and Lycos report expected pro forma 2000 revenues of around $500 million and together boast more than 50 million unique users and 175 million page views per day. Terra Lycos will operate in 37 countries.
The transaction is expected to be completed by the third quarter of 2000. Telefonica CEO Juan Villalonga will serve as chairman of Terra Lycos, Lycos' Bob Davis as CEO and current Terra CEO Abel Linares as COO.