Technology News
Fri, 02 Jul 1999, 6:02pm EDT
Infoseek Shares Rise on Optimism That Disney Will Buy Remaining Stake
By Mylene Mangalindan
Infoseek Shares Rise on Optimism About Disney Web Transaction
Sunnyvale, California, July 2 (Bloomberg) - Infoseek Corp.
shares rose 11 percent on optimism that Walt Disney Co. will buy
the remaining portion of the No. 4 Internet search service that
it doesn't own.
Infoseek rose 5 1/2 to 55 7/8 in trading of 4 million
shares, nearly double its three-month daily average.
Burbank, California-based Disney said last month it is in
talks to buy the 57 percent of Sunnyvale, California-based
Infoseek that it doesn't already own. Infoseek shares surged
after financial commentator Dan Dorfman said Disney is still
looking at Infoseek and a transaction could come as early as next
week.
''This is about the future of Walt Disney,'' said Stewart
Halpern, analyst at ING Barings. ''Being able to
more easily compete for acquisitions as the Internet world
consolidates is something of strategic importance.''
Disney shares fell 1/2 to 28 1/2 in trading of 11.6 million,
making it the 8th-most active stock in U.S. trading.
Calls to Infoseek weren't immediately returned. Disney
declined to comment.
Analysts have said that Disney will be able to determine its
future on the Internet better if it has complete control of
Infoseek, with which it shares a joint venture called the Go
Network. Go Network offers features to search the Internet and
entertainment, sports, news and other Web sites.
quote.bloomberg.com |
