BT and LookSmart part company

LookSmart said in the US that it had agreed with BT to close the venture and integrate some of the operations into the parent business, which will now operate in the two territories independently.

A spokesperson admitted that the move, which will see LookSmart hand over $3.5m and one million shares to BT to resolve debt related to the venture, will result in redundancies at the UK business, though she refused to speculate on how many jobs would be lost.

The UK venture employs 60 people, plus 20 editors who are contracted directly by the LookSmart US parent. The spokesperson said an announcement would be made at the beginning of next month over the future shape of the business and job cuts.

BT is also to receive a further $1.5m related to funds it had put aside for further backing of the business.

A LookSmart statement read: "This restructuring reflects the natural alignment of BTLookSmart's operations with LookSmart's core business, a view shared by both BT and LookSmart."

It also reflects recent efforts at BT to streamline its internet operations and rid itself of non-core businesses in order to ease a hefty debt burden.

The move comes just five months after BTLookSmart launched its BidSmart paid-for listings service - taking on specialists Overture and Espotting - in June. Ironically, Overture launched in Japan yesterday, while Espotting has continued its European-focused expansion with new operations in Ireland launched last week.

BT LookSmart was launched in the UK in March 2000, having already operated in Europe from a London HQ.





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