DEBORAH MARCHINI, CNN ANCHOR: After days of speculation, Spain's Terra Networks has confirmed plans to buy the Internet portal Lycos for more than $12 billion. Lycos shares rallied after-hours because the price is a lot more than had been expected. Lycos shareholders will get more than $97 a piece for each share, they were at $72 at the close of trading Tuesday after an 11 point gain. Terra's ADRs also trade on the Nasdaq, they fell Tuesday to 53 9/16. The Terra-Lycos deal highlights a consolidation that's going on in the Internet sector.</s>DAVID HAFFENREFFER, CNN ANCHOR: Janet Guyon of "Fortune" magazine has more now from London -- Janet.</s>JANET GUYON, LONDON BUREAU CHIEF, "FORTUNE": Good morning, David and Deborah. This deal does highlight the consolidation that's going on in the Internet business here. We have a report from Price Waterhouse Coopers this morning that suggests that because a lot of Internet companies are running out of money, they will have to start consolidating. So they are saying that, for the next 15 months, the majority of Internet companies in the U.K. will run out of money, and we've got another report that Blue.com (ph) is in that position right now, which was a sportswear Internet company. But I want to talk about the Terra deal a little bit more. One of the things that people haven't talked about very much is the role of Bertelsmann in this deal, and Bertelsmann has agreed to buy about $1 billion worth of advertising and other services from Terra-Lycos, and also provide content to this new merger. So I think the role of Bertelsmann here is a bit overlooked and is actually quite important to the deal.</s>MARCHINI: All right, thank you. Janet Guyon of "Fortune." We appreciate your input.
Terra-Lycos Deal Highlights Consolidation in Internet Sector