USA Network (Nasdaq: USAI) chairman Barry Diller didn’t waste words on Tuesday when he was asked about his company’s proposed merger with Lycos. When asked whether USA Networks was considering renegotiating the proposed deal, he replied “No, we are not.”
Lycos stock has been hammered since the proposed merger that would create an e-commerce powerhouse was announced last month. Major Lycos shareholder CMGI (Nasdaq: CMGI) has said it does not want Lycos to be acquired at the stock’s current levels.
Lycos is currently trading at about 90. The day the proposed deal was announced, Lycos stock was at 127-3/4.
“The market overreacted,” Diller said Tuesday.
Perhaps, but there’s also a Lycos shareholder lawsuit to complicate matters, and Lycos’ $83 million deal with Wired Ventures could be in jeopardy. This story is hardly near the happy ending.