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Wetherell's Internet world view is getting its fiercest test in a takeover tussle with Barry Diller--a real-economy mogul if ever there was one--who has made a bid for Lycos, the Internet portal that Wetherell financed and of which he owns 18.5%. While Diller and Wetherell agree that the partnering of Lycos' new-media assets and Diller's traditional media hodgepodge of USA Networks, Home Shopping Network and other film- and television-production interests makes strategic sense, they disagree sharply on the value Diller ascribes to Lycos...

Author: /time Magazine | Title: The Internet's Money Machine | 5/3/1999 | See Source »

...world Diller comes from, you don't pay a premium for unprofitable businesses. But in the Internet economy, where almost nobody has made a profit yet (and certainly Lycos hasn't), that hasn't kept Yahoo from shelling out $4.35 billion for GeoCities, or stopped the Internet portal @Home from paying $6 billion for Excite--both deals made at hefty price premiums. Of course, they used their richly priced shares as currency. Diller's offer to merge part of his USA Networks with Lycos to form a new company, of which Lycos would own 30%, values Lycos at approximately...

Author: /time Magazine | Title: The Internet's Money Machine | 5/3/1999 | See Source »

...Diller, who made an unsuccessful run at Paramount in 1994 using stock from the shop-at-home company QVC, has been seen by the Internet community as crashing the party with a most unwelcome piece of news: your companies aren't worth as much as you think. (And for a few wobbly days early last week, he was right.) Wetherell and his ilk are now seeking to show Diller the door. "He's Barry Diller, he's famous, he's a great dealmaker, but he may have overstepped," says Joe Butt, senior analyst at Forrester Research...

Author: /time Magazine | Title: The Internet's Money Machine | 5/3/1999 | See Source »

Here comes Barry Diller. The man credited with creating the TV mini-series and the Fox network is suiting up for portal combat. This morning it was announced that Diller's USA Networks will acquire Lycos, Yahoo's last independent competitor in the search site race. But can a guy whose idea of programming has more to do with "Roots" than root directories make it work...

Author: /time Magazine | Title: Lycos Bought by Diller's USA Networks | 2/9/1999 | See Source »

...complicated deal rolls up Lycos with Diller's Home Shopping Network -- hey, the original e-commerce -- and the recently formed Ticketmaster Online-CitySearch company. The new company, called USA Lycos Interactive Network, will keep Lycos CEO Robert Davis as president but will install Diller as chairman. MORE...

Author: /time Magazine | Title: Lycos Bought by Diller's USA Networks | 2/9/1999 | See Source »

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