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To: Hiram Walker who wrote (11216)	6/19/1998 7:28:00 AM
From: RagnBull	Read Replies (2) \| Respond to of 27307

PaineWebber: Disney's Infoseek Stake Cost Under $8/Shr . NEW YORK (Dow Jones)--Walt Disney Co.'s 43% ownership stake in Infoseek Corp. really cost the media giant less than $8 per share, according to the calculations of PaineWebber Inc. analyst Christopher Dixon. On the surface, Disney paid Infoseek $370 million in cash and investments for 25.8 million shares, or $14.34 a share. Disney agreed to sell to Infoseek its ownership stake in Internet technology company Starwave Corp. plus $70 million in cash. Disney's investment in Starwave represents a value of about $300 million, according to Dixon. But when Infoseek's agreement to pay Disney $165 million for promotional purposes is considered, the deal works out to be $7.95 a share, Dixon said. Disney will use the $165 million to promote Infoseek's site on the Disney Web site. "The key is to recognize that Disney is moving an asset off the balance sheet into a publicly traded Internet company whereby those shares can be used to build out Disney's Internet presence on a non-recourse basis to Disney," Dixon said. -Maria V. Georgianis; 201-938-5244 "Dow Jones News Service" "Copyright(c) 1998, Dow Jones & Company, Inc."