Disney will combine its
Buena Vista Internet Group
with Infoseek and create a single Internet business called
. A new class of stock is expected to be issued and traded on the
New York Stock Exchange
under the ticker symbol GO. Disney currently owns about 42% of Infoseek. Under terms of the transaction, Infoseek shareholders will receive 1.15 shares of go.com for each of their Infoseek shares. Disney will have a 72% retained interest in go.com following the merger.
Investors do not seem thrilled with the news early today. Infoseek was down 4 5/16, or 8%, at 47 3/16 in recent trading, while Disney was up 5/16, or 1%, at 27 15/16. Traders may be selling the fact of a buyout, as Disney has been rumored to be looking to increase its stake in Infoseek for some
Elsewhere, a positive earnings report from
this morning was not helping online brokerage stocks.
Ameritrade reported earnings of 5 cents a share for its fiscal third quarter, vs. the 3-cent estimate from
. Revenue came in at $78.1 million vs. $39.6 million in the third quarter of last year. Ameritrade was lately down 1/8 to 38, and
was down 1/4 to 39 1/2.
Yet more site problems plagued
over the weekend. Pages at the online auctioneer's site were inaccessible for about three hours on Saturday due to what the company said were problems with its database server.
looked at eBay's woes in a recent
piece. Shares of the company were off 3 5/16, or 2%, at 132 7/16 in early trading.
eBay's ongoing woes come at a time when yet another Internet site is looking to take some of its business away.
said it was beginning online auctions at its
Web sites today. Lycos was off 11/16 to 106 1/2 lately.
continued to suffer from the postearnings blues. In early trading, Yahoo! was off 4 1/4, or 2.7%, at 155 3/4. It has fallen more than 40 points since reaching a high of 189 1/4 a day before it bested earnings