News finally out on AOL via TheStreet.com
Walt Disney (DIS:NYSE) plans to scale down its Internet operations, and possibly terminate its Go.com business, according to a published report.
The Financial Times reported that the entertainment giant, which was one the earliest traditional media groups to invest in Web-based projects, was likely to scale back, or eliminate, its money-losing Web portal as a result of the decline in online advertising.
Shares of Disney were lately down 10 cents, or 0.3%, to $29.71 on the New York Stock Exchange. Meanwhile, the Walt Disney Internet Group (DIG:NYSE) didn't hold up as well, losing $1.78, or 30%, to $4.15, also on the Big Board.
The move could also result in job cuts, the report said. Disney representatives couldn't be reached for comment.
Disney, which is based in Burbank, Calif., is reportedly questioning whether Go.com, a portal that includes lures such as free e-mail, search capacities and stock quotes to draw visitors through links to associated sites, was a long-term sustainable model.
