The $36 million acquisition of Lycos is an all cash deal with the entire stock of Lycos having been purchased by Ybrant Digital. Speaking with MediaNama, Suresh Reddy, CEO of Ybrant Digital said that they're paying $20 million up front, and will pay the rest in the future based on certain deliverables. The deal is being financed by Ybrant's internal accruals, and the company is also looking to raise PE funding. Lycos currently has around 60 employees, and all employees will say on board, including CEO Jungwook Lim. Excerpts from our brief conversation with Reddy: MediaNama: Why have you acquired Lycos? It's faced significant devaluation over the years... Reddy: What we have to see is what the company is worth today and the potential it has. The team is looking strong. What we will leverage is the brand - everyone recognizes it. The decline in value is not relevant - I'm looking at the business and the size, and if I'm paying the right price for it. Daum did sell some properties, cleaned it up, made it profitable. There is tremendous synergy and love for the brand. Our assessment has been that this is a fantastic business to buy, even leaving. In terms of synergy between Ybrant and Lycos, we have mostly a banners (display advertising) business, and some search (advertising). This deal will give us the impetus for growth to add search business into the mix. With this piece coming in, we have more to offer to our advertisers.…
