Gaylord Entertainment To Shut Internet Unit, Lay Off 85

Gaylord Entertainment (GET Quote) announced Tuesday that it will shut down its Internet operation, Gaylord Digital, by year end and lay off 85 employees.

The Nashville-based entertainment company, whose holdings include the Grand Ole Opry and three radio stations, expects to take a $35 million charge in the fourth quarter related to the closing of the Internet operation operations.

The company also said that transactions for two components of Gaylord Digital, Musicforce.com, an e-commerce site, and Lightsource.com, an Internet broadcasting site, are "in negotiation." Proceeds from these transactions, if consumated, wouldn't materially affect the fourth-quarter charge, the company said.

In the first nine months of 2000, Gaylord Digital resulted in negative operating cash flow of $16.8 million, contributing to the parent company's negative operating cash flow of $10.9 million for the same period.

In addition, the company said another 31 positions have been cut in various areas of the company as part of an ongoing reorganization.

Shares of Gaylord Entertainment were recently trading up $1.25, or 5.6%, to $23.50 in New York Stock Exchange composite trading.