Disney will invest in a Web gateway; in $900 million deal, it joins rush by media companies
Article Abstract:
Walt Disney will acquire a 43% stake in World Wide Web service company Infoseek for approximately $900 million. The complex transaction highlights a flurry of consolidations across the media and technology sectors. General Electric's NBC unit, AT&T, Microsoft and Netscape have entered, or are reported to have entered, the race toward constructing Internet portals. Financial specifics call for Disney to pay $70 million in cash for 43% of Infoseek and relinquish Web site creator Starwave, which would command around $800 million as an independent company. Other financial terms call for Disney to loan as much as $139 million to Infoseek through 2003 in exchange for an option to raise its ownership stake to 50.1%. Infoseek in return will purchase $165 million in Disney advertising through 2001, which will be applied to ABC television programming and other Disney-owned operations such as Disney World's Internet pavilion.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
NBC buying a portal to the Internet; gaining control of Snap and 5% of parent, Cnet
Article Abstract:
NBC acquires a controlling stake in Internet directory company Snap from its creator, Cnet, as well as a 5% stake in Cnet. The television network's move, which could total $39 million upon completion, reflects the idea that directory sites are anchoring on-line profits. No other broadcast network operates an Internet portal service, but each of the networks has developed or acquired various Web sites. Cnet spent $25 million to built Snap, which has been losing $1.2 million per month in an increasingly competitive portal services market. NBC's gambit seems to consist of purchasing an unsuccessful portal site and increasing its profile on the network for the 80% of Americans who do not yet use the Internet. Terms call for NBC to pay $5.9 million for a 19.9% stake in Snap, plus an option to purchase 40.1% of Snap for $32 million. NBC also will buy 4.99% of Cnet's stock for $26 million, or $32 a share.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
The hum of search engines is music to Netscape's ears
Article Abstract:
Netscape is among the companies and traditional media players that are interested in developing or purchasing their own Internet search services. Many Internet users now employ these services as the primary gateway to cyberspace. Search companies Lycos, Infoseek and CNet's Snap service are actively negotiating with Netscape to provide the central search function for Netscape's Netcenter, a new World Wide Web site, according to insiders. The discussions are part of a Netscape plan to position Netcenter against America Online and Yahoo as a full source of communication, information and shopping. Search companies are concerned about allowing Netscape to emerge as a potentially powerful new rival, but a deal may help a firm vault ahead of competitors. Netscape has not made it clear whether it wants to build any brand but its own.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: GM sees costs as high as $500 million to debug year 2000 computer glitches. On the block; DaimlerChrysler seems to see a good deal in mess that is Nissan; Japan's ailing auto maker needs cash, and more, after major U.S. flops; slogan on the speed bumps
- Abstracts: Swiss bankers face a determined opponent. Special deals for special people. Sanctions threatened over Swiss accounts
- Abstracts: Tax office leaves parents at a loss over child maintenance. Budget proposal 'ambushes' self-managed super funds