Inexplicably, Lycos Inc shares jumped almost 19 per cent in Nasdaq trading after CEO Robert J. Davis gave a mystifying presentation to the Hambrecht & Quist Technology Conference in San Francisco. Three hints in particular have intrigued observers. First, Davis said Lycos would build an automated version of Yahoo’s web directory, pointing out that Yahoo’s model is labor-intensive and that many of its links have rotted. Davis said Lycos’s new service would be announced very, very shortly, but he would not be drawn on a date. Second, Davis said that Lycos was poised to unveil an online service with an unnamed carrier that would overshadow Yahoo’s MCI deal. Third, the next 45 to 60 days will see Lycos take legal action against infringers of its recently patented spider technology, Davis said. Pundits fingered Infoseek, Excite and/or Yahoo as potential targets, but Davis said most competitors had violated Lycos’ patents. The market’s bullish response does not reflect the usual outcome to such lawsuits.
