As part of the deal, Terra Lycos inked a five-year $1 billion advertising and commerce agreement with European media giant Bertelsmann. Terra Lycos will tap Bertelsmann's books, music and TV content and work on a way to deliver Bertelsmann's content digitally. Telefonica, a major provider of Spanish- and Portuguese-language telecommunications and media, agreed to underwrite a $2 billion rights offering by Terra. In exchange, Terra Lycos also will have access to all Telefonica's media content, which includes TV and pay-TV programming as well as radio.
Copyright May 2000, Crain Communications Inc.