365 Corp gets caught up in Chrysalis's web

365 Corporation and media group Chrysalis are to merge their internet operations.

According to today's FT, the two companies will split off their online arms and form a new join venture in a bid to cut costs and increase the chances of them making money.

365 Corp's online operations, including football site Football365, attract millions of impressions, and Chrysalis's Rivals.net - an independent network of sites run by sports fans - is also enjoying high usage figure. But neither has been able to make significant profits.

The name of the new venture will be unveiled later today.

The Sunday Telegraph reported that 365 will continue to develop its voice services business, Eckohtec.

Meanwhile, sports.com has acquired the German arm of the ailing Sportal outfit, which was sold to internet betting firm UKbetting for a nominal fee earlier this month.