Lycos Internet at new 52-week low

Lycos Internet, a Hyderabad based company, offering digital marketing solutions to businesses, agencies and online publishers hit a new 52-week low today at Rs.17.15. It was locked on the 20% lower circuit yesterday at Rs.19.08.

The company yesterday issued a clarification regarding the news item - YMA files for protection with US courts on the Lycos Inc. The company confirmed this news, stating that Ybrant Media Acquisition (YMA), its US step down subsidiary has filed for Chapter 11 protection with US courts. And this was done to “create breathing room necessary to complete settlement talks on Lycos Inc. purchase.”

Lycos has said that YMA is just an acquisition vehicle that was used to buy and own Lycos Inc asset and has no significant operations other than related to Lycos Inc ownership.

The company has made $20 million first payment in 2010 towards the purchase of Lycos Inc but a difference of opinion arose on the final amount due between the seller and the company, for which the company is now engaged in settlement discussions. And this Chapter 11 will give it the time and space required for negotiations to reach a settlement.

Lycos has clarified that this will have no impact on the current operations of the company and was done purely to protect the shareholder interest in the ownership of the asset Lycos Inc.

Well, the market is not convinced and it has battered down the stock.