Sunnyvale, Calif. -- In another move by a media
giant to secure market share on the Internet, The Walt Disney Co. agreed to pay $70
million, plus its ownership stake in Starwave Corp., for 43 percent of Infoseek Corp.
Disney also got warrants to buy a majority stake over time,
and Infoseek agreed to buy $165 million in Disney advertising support for a new
"portal" service that the companies will develop. That portal will provide
search and directory services and point users to other Disney Internet sites and services,
including ESPN SportsZone and
Disney's Blast Online children's service.
The deal follows NBC's agreement to spend up to $64
million on stakes in CNET Inc. and its Snap! Internet portal.
Disney bought out partner Paul Allen's controlling
stake in Starwave, an Internet site
designer, in April.