Terra Lycos: Creating a Global and Profitable Integrated Media Company

Published 17 Feb 2002
Reference 5042
Topic Operations
Industry E-Commerce
Region Global
Summary

This case recounts the strategy of Terra Lycos, an integrated global media company formed by the October 2000 merger of Spain’s Terra Networks and US-based Lycos, to achieve profitability and a leading market position. At the time the case was written (November 2001), Terra Lycos trailed its three heavyweight contenders, AOL-Time Warner, Yahoo! and Microsoft/MSN.

Teaching objectives

To discuss online media, and the strategy of a major industry player in uncertain and negative market conditions. The case traces Terra Lycos’ creation and its strategy to become an international player during the new economy slowdown through diversifying revenue streams and integrating online and offline media.

Keywords
  • Information products
  • Information economy
  • Versioning
  • Customer relationship management
  • Portals
  • Media
  • Dynamic pricing