WebMD commits $52.5 mil to Lycos in marketing deal

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Lycos joined forces with healthcare site WebMD in a marketing deal worth $52.5 million over three years. Under the terms of the deal, WebMD becomes the exclusive provider of healthcare content, sponsorships and e-commerce on the Lycos Network. Lycos also said the deal would extend to the proposed USA/Lycos Interactive Networks, with WebMD receiving promotion space on USA Networks TV properties.

However, the USA/Lycos deal fell under greater scrutiny March 10 after The Wall Street Journal reported that CMGI, Andover, Mass., the largest shareholder in Lycos, had hired Morgan Stanley Dean Witter & Co. to find other buyers in an attempt to stop the deal, which would merge Lycos with some of USA Networks' properties. CMGI CEO David Wetherell resigned from Lycos' board of directors March 9, protesting the proposed merger.

Copyright March 1999, Crain Communications Inc.

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