|
Interest in Lycos higher
|
 |
January 20, 1999: 11:19 a.m. ET
As portals become more popular, the remaining independents garner attention
|
NEW YORK (CNNfn) - Almost immediately after Excite Inc. was snapped up by @Home, investors turned their attention to finding the next Web directory destined for the auction block.
Lycos Inc.' stock (LCOS) surged ahead Wednesday as investors anticipated it might be the next site to be purchased as businesses search for Web portals, basically gateways to the Internet which provide personalized information and links.
"I think this is really going to be the beginning of the wave," said Shaun Andrikopoulos, Internet analyst at B.T. Alex Brown. "I think that Lycos is clearly one that needs to partner with a larger media player longer term."
Firms like Lycos and Excite provide something potentially important to Web firms looking to better their positions; brand-name recognition.
@Home Corp.'s Tuesday announcement it would purchase Excite locked up one of the more popular Internet destinations and, increasingly, other Internet firms are convinced they need to find similar, well-known partners.
With the World Wide Web expanding every day, it becomes more and more difficult for users to keep up with what's new on the Web. Faced with such dizzying choices, Web users have turned to portal services such as Infoseek, Excite and Netcape's Netcenter.
At these portal sites, users submit personal and demographic information which the sites then use to provide news, sports and business reports, along with other information, based on the customer's individual interests.
Media companies and other firms think that such well-known portals will be a good way to not only deliver an audience, but also a way to channel consumers to advertisers' goods.
Advertisers usually place banner ads on web sites which they believe their target audience visits. But because portal sites collect large amounts of personal information regarding a visitor's age and interests, the portal sites have an excellent product to provide to advertisers.
With the personal information portals have available, advertisers can more effectively target those likely to buy their products and services.
And if electronic commerce takes off, as many Internet firms hope, such information will be key toward successful merchandising on the Web.
Major portal sites like Lycos which have yet to hook up with larger partners are becoming rare.
In the past year, America Online Inc. (AOL) bought Netscape Communications Inc. (NSCP) for $4.2 billion. Walt Disney Co. and Infoseek Corp. (SEEK) have already gone the next step, creating the GO portal.
Lycos could draw a lot of attention. Excite, with about 17 million visitors each month, attracted many suitors, according to its CEO, George Bell.
In comparison, the Lycos Network draws more than 26 million visitors monthly, second only to Yahoo!, according to Media Metrix data.
The No. 1 portal site, Yahoo!, is probably too big to be acquired by another company, according to Andrikopoulos.
"Many people have posed the question as to whether Yahoo! could become an acquirer of some fairly well-established companies, as well," he said.
"Our sense is, though, that Yahoo! is really well-positioned as a standalone company. They've built a solid brand on the Internet and are probably less inclined to partner than some of the smaller players in this space." 
|
|
|
|
|
|
Lycos
Yahoo!
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
