Anything bad in future for Terra Lycos?

[msgraph]

Various large international companies are taking the hit from Argentina's currency devaluation. Things can even get worse in the next few days, weeks, and months.

One company that will be largely affected, if not already, is Telefonica, who runs almost half the country's telephone system.

Terra Networks, who own Lycos, is the child of Telefonica. They could take a serious hit from this by losing various investments and earnings. We're not talking small numbers here.

Think this will have a major effect on Lycos?

[Brett_Tabke]

Interesting. Sounds like you know the finacial status better than most here do. I am under the impression that most of their assests are in Europe and immune to flucuations down there. Granted, whenever the parent hurts, the children do too.

[heini]

Telefonica is a giant. Hard to imagine this could hurt them seriously. Any idea what's at stake?
It's true however that Spanish economy is closely connected to Latin America, perhaps even more than to EURO Land.

[msgraph]

[biz.yahoo.com...]

Should Argentina's problems spread to Brazil, its largest trading partner, Telefonica, the telecommunications company, would also suffer badly. Nearly 23% of Telefonica's earnings (EBITDA) come from Brazil, compared with only 11% from Argentina.

[Mike_Mackin]

What is the term for ecomomic drift across borders?
It begins with CON

[TallTroll]

I remember seeing somewhere that Spains banks are very heavily exposed in Argentina, and the Spanish economy is hardly in the best of shapes to start with.

Telefonica has recently signed big deals with Mitsui to provide 2.5G and 3G mobile content,

During the first stage, Mitsui will supply Telefonica Móviles with entertainment-related content, such as colorful downloadable wallpaper, downloadable polyphonic ring tones, fortune telling, and games, applicable both in WAP and GPRS

and with M$ to get Hotmail on your mobile (and incidentally to share in the revenue)... and the share price is still heading south.

Doesn't look good in the short/medium term, but I think they'll live

The telecoms operator generates some 13 percent of overall revenues from data services, most of which are from text messages, both companies [M$] said in a statement

Text/SMS volumes only seem to go up