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Disney and Infoseek Combine Internet Businesses to Form go.com

Strategic Insights

— 1 min read

The Walt Disney Company has reached an agreement with Infoseek Corp. to merge their Internet businesses, creating a single entity called go.com. This new company will operate on the New York Stock Exchange under the ticker symbol GO, with shares issued to track its performance. Disney's current ownership of Infoseek and the assets it contributes to the combined enterprise will result in a 72% retained interest in go.com after the deal is closed.

Key Takeaways:

  • The deal between Disney and Infoseek combines their Internet businesses, creating go.com, a new online entity.
  • Disney shareholders will receive a new class of common stock, with the ticker symbol GO, to track the performance of the combined company.
  • Infoseek shareholders will receive 1.15 shares of go.com for each of their Infoseek shares.
  • Disney will have approximately a 72% retained interest in go.com following the deal.
  • The combined businesses are expected to generate approximately $350 million in revenues for the current fiscal year.
  • Disney is contributing its Internet assets, including Disney.com, Disney's Club Blast, and The Disney Store Online, to the combined enterprise.
  • Additional assets being contributed include web initiatives such as Family travel, Family shopping, and Disney auctions.
  • Disney is also contributing its share of the 10-year joint ventures with Infoseek, including ABC News Internet Ventures and ESPN Internet Ventures.

Statistics:

  • The combined company, go.com, will have a 72% retained interest by Disney.
  • The deal is expected to generate approximately $350 million in revenues for the current fiscal year.
  • Disney will contribute 52.5% of its assets to the combined enterprise.
  • Infoseek shareholders will receive 1.15 shares of go.com for each of their Infoseek shares.
  • The deal is expected to close by the end of the calendar year.
  • Disney has a long-term commitment to maintaining a leadership position on the Internet.

Sources:

  • UPI (United Press International) - Copyright 1999 by United Press International. All rights reserved.
  • COMTEX (http://www.comtexnews.com) - News Provided by COMTEX

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