Dorine
Unloaded seek today
Tuesday October 27 2:27 PM EDT
Infoseek: Losses will continue
SAN FRANCISCO (Wired) - The integration of Infoseek, Walt Disney Co., and
Starwave content into a new directory site,
to be called Go.com, is an expensive undertaking that will push back Infoseek's
profitability at least three years, according to
recent filings by the companies.
In June, Infoseek Corp (Nasdaq:SEEK - news) entered a complex pact with Walt
Disney Co in which Disney agreed to
purchase 43 percent of Infoseek in exchange for $71 million in cash and Infoseek's
agreement to buy Starwave, a developer of
Internet programming including ESPN Sportszone, from Disney.
Together, the three companies would develop a new portal site that would combine
content and services from all three
companies. Infoseek also promised spend $165 million to market the new site.
The cost of developing the new site, recurring charges for the Starwave acquisition, and
the hefty marketing tab will push
Infoseek's profitability until ''at least 2002,'' according to a shareholder proxy statement
filed with the Securities and Exchange
Commission.
By contrast, the leading portal competitors, Yahoo! Inc and America Online Inc
(NYSE:AOL - news), have each been
profitable for several quarters running.
(Reuters/Wired)
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