The case describes USA Networks following its failed bid to buy the Internet portal Lycos in 1999. By 2001, USA Networks was an agglomeration of assets in two distinct areas: electronic commerce (something USA Networks refers to as interactivity) and entertainment. In each of these two areas, USA Networks faced much larger competitors operating discretely. The case explores USA Networks' attempts to compete simultaneously in the spheres of online retailing and television and filmed entertainment.
