USA Networks Inc, the media company that tried to buy Lycos Inc earlier this year only for the deal to fall apart amid shareholder disapproval, has formed a so-called e-commerce unit to sell back-end services specifically to e-commerce companies. It is looking to sell the use of its back office operations that are used by USA properties including the Home Shopping Network, Ticketmaster and the Hotel Reservations Network. The unit will also sell something called USA Networks eSolutions, which is a software and services package including email, collaborative browsing, fax-back and chat rooms.
There appears to be no major investment here on USA Networks’ part; more of an acknowledgment that these types of back-end services such as call centers and shipping are becoming increasingly valuable assets in the mad rush to get e-commerce web sites up and running. Another way of looking it is to say that this is one way for USA Networks to pretend that it’s an e- commerce firm, rather than a purveyor of low-quality television. Jon Miller, currently president and CEO of the USA broadcasting unit will lead the unit and the first customers will be announced within six months.
