Korean Daum May Acquire Lycos


As I reported first, the companies have made a tentative official announcement: Korean portal Daum is acquiring Lycos USA, even though the negotiations are still going on.

The deal could fetch between $95 million and $115 million. The price is slightly above Lycos’s book value of 75 million euros ($90.36 million).

Experts raised concerns about Daum’s possible acquisition of Lycos, saying it will have a negative impact on stocks.

JooAngDaily: Analysts say Daum’s move to buy Lycos is part of a larger plan to become a global Internet player.

Reuters: A deal would underline the growing global ambitions of technology companies in South Korea, which has more broadband connections per head than any other country, though analysts are not convinced of its investment merits. “There’s clearly some brand value with Lycos, but it is doubtful that the acquisition would produce any synergy effect,” said J Park, an analyst at Samsung Securities. “It could instead have a negative impact on Daum

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