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Spain’s Telefónica Launches €1.7bn Bid for Terra Networks

News, 30 May 2003

Spanish telecoms giant Telefónica is bidding to take control of Terra Networks, the internet business that operates the Terra Lycos and Lycos portals.

Telefónica already holds 38% of the firm, and is offering other stockholders a total of €1.73 billion ($2.04bn; £1.24bn) in cash for the remaining 62%. The group is willing to pay €5.25 per share, a 15% mark-up on Terra’s share price over the last six months, valuing the business at €2.1bn. The telecoms titan will go through with the offer once it has amassed 75% of the web firm’s stock.

Originally comprising all Telefónica’s online assets, Terra floated in 1999 then merged with US firm Lycos a year later. It now operates the Terra Lycos brand in Spain and Latin America, and Lycos in the US and the rest of Europe.

Data sourced from: The Wall Street Journal Online; additional content by WARC staff