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Disney Reportedly May Cut Back Internet Operations, Abandon Go.com
January 28, 2001
NEW YORK -- Walt Disney Co. reportedly is likely to cut jobs and abandon the Go.com portal as part of an overhaul of its Internet operations.
According to the Financial Times, Disney (DIS) officials declined to comment on the potential cutbacks, but Disney Chairman and Chief Executive Michael Eisner said in an interview that "the advertising community has abandoned the Internet" and questioned the viability of operating a Web portal.
Officials at Walt Disney Co. and Walt Disney Co. Internet Group (DIG), weren't immediately available for comment late Sunday.
Disney Internet Group, which completed an initial public offering in November 1999, is the tracking stock for Disney's Internet and direct-marketing business. Disney Internet Group operates several Web sites including ABC.com, Disney.com, Go.com and ESPN.com.
Walt Disney President Robert Iger expressed concerns over whether the portal was a long-term sustainable model, the Financial Times said.
Until a few weeks ago, Mr. Eisner had said he planned to stand behind the company's Internet investments, even as other media companies were cutting back, the Financial Times said.
For the fiscal fourth quarter ended Sept. 30, Disney Internet Group posted a loss of $65.2 million, or 42 cents a share, excluding amortization, charges and a gain. Revenue was $82.4 million for the quarter, compared with pro forma of $87.5 million in the year-ago quarter.
Copyright (c) 2001 Dow Jones & Company, Inc.
