Vodafone tipped to splash out $10bn on Lycos takeover

NEWS Vodafone AirTouch is planning a $10bn bid for Internet portal, Lycos, according to reports on US wires. Industry watchers say the projected deal highlights an emerging trend in online business with operators becoming increasingly interested in joining forces with content production companies. The takeover would create a multi-access Internet portal, enabling users to access the Web through various devices including mobile phones and televisions. Don Pearce, principal consultant at telecoms consultancy Netcom, said: "In the race for better services, networks must become commodities in order to grow. The service operators need capital from content providers to improve the network and customer charges are not enough to provide resources for technical improvements." Dan Ridsdale, consultant at research firm Ovum, told silicon.com: "The deal will allow Lycos to provide services for both fixed and wireless networks, and it gives Vodafone the much desired entry into content."