Disney to Shut Down Go.com Portal,
Eliminate Tracking Stock for Net Unit
A WSJ.COM News Roundup
BURBANK, Calif. -- Walt Disney Co. said it would shut down its Go.com entertainment portal and convert the tracking stock for its Internet operations into Disney common stock.
The move marks a final retreat by Disney from its once-ambitious plans to challenge portal leader Yahoo! Inc. Go.com had its origins in also-ran portal and search engine Infoseek Corp., which Disney acquired, integrated with its other Web properties and renamed Go.com. Disney later refocused Go.com on entertainment.
Disney said Monday that its Internet business, Walt Disney Internet Group, will continue to operate under its current management structure as a business segment of Disney. The company said it will operate a slimmed-down version of Go.com during a transition period, and will seek to sell the Go.com name and Infoseek search engine.
Walt Disney Internet Group will continue to operate a slew of sites including Disney.com, Family.com, ESPN.com, NFL.com, Soccernet.com, various ABC-related sites, Mr. Showbiz, Movies.com and Wall of Sound. Walt Disney Internet Group also produces Enhanced TV telecasts in conjunction with ABC and ESPN television programming.
Disney said the closure of Go.com will eliminate about 400 jobs, the majority of which are based in Sunnyvale, Calif.
Each outstanding share of Disney Internet Group common stock will be converted into 0.19353 of a share of Disney common stock as of March 20, 2001, Disney said.
Disney expects to take a noncash second quarter charge of about $790 million, or 37 cents a share, for the write-off of intangible assets, as well as additional charges of $25 million to $50 million for costs related to severance, write-offs and other items. |
