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Lycos chief bangs the drum
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February 26, 1999: 1:26 p.m. ET
CEO Bob Davis meets the press to tout merger deal with USA Networks
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NEW YORK (CNNfn) - Lycos Inc. chief Bob Davis took his act on the road Friday to stress the importance of the Internet portal's merger with USA Networks.
Lycos (LCOS) saw its stock nose-dive after it announced the deal and major investors have threatened not to approve the merger. The press conference in New York came one day after Lycos released second-quarter earnings that beat Wall Street's expectations.
"We believe -- I believe -- very, very strongly that what we have created for our ourselves is a next generation Internet company," he said.
With the USA Networks (USAI) deal, Davis said, the company becomes a leader in a wide variety of Internet growth areas. Among other things, Davis said, the company now has access to 20 million credit card holders.
Davis said he was surprised when the stock went south and took the blame for not describing the deal properly.
"Shame on us," Davis said.
On Thursday, a Pennsylvania law firm said it had filed a class action lawsuit, charging Davis and Lycos had falsely represented that the company was "committed to an independent strategy" when it really was in discussions with USA Networks.
Lycos shares were down 2-11/16 at 90-5/16 at midday Friday. USA Networks was unchanged at 39-5/8. 
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Lycos
USA Networks
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