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eBay To Auction Mickey's Merchandise

Disney's Go Network has inked a 4-year agreement with eBay making it the

exclusive on-line auction site for Walt Disney's Web properties. Under

terms of the deal, eBay and the Go Network will create two co-branded

auction sites -- one to provide person to person transactions, the other

merchant to consumer sales, featuring goods from Disney's properties and

ESPN, among others. Disney will market the two sites through its Go

Network, a portfolio of Web sites that includes Disney.com, ABC.com and

ESPN.com, as well as its off-line properties, like the ABC Network, Disney

Channel and its theme parks. Financial terms of the deal were not

disclosed. "This agreement is critical to Go.com's new strategy of focusing

our portal on entertainment, recreation and leisure activities," said Steve

Bornstein, chairman of Go.com. "The combination of exclusive merchandise

from across the Disney company, terrific distribution from the Go.com

family of Websites, Disney's unparalleled promotional capabilities, and

eBay's vibrant on-line community should create a world-class on-line

trading environment." The Go.com auction site with UBid, which launched

four months ago, will continue through the duration of the eBay deal.

Go.com's auctions will now be incorporated into the new sites, with

www.ebay.go.com expected to bow in the second quarter. The company auctions

will coincide with Disney.com's celebration of the 100th anniversary of

Walt Disney's birth, followed by auctions highlighting Disneyland's 45th

anniversary. The Disney agreement resembles deals that eBay finalized last

year with America On-line, under which co-branded auction sites were

created for AOL.com, CompuServe and the Internet service provider's other

on-line brands. As part of that deal, eBay is paying AOL US$75 million but

is not sharing any transaction fees from the co-branded auctions. With the

new Disney deal, eBay for the first time will launch separate merchant to

consumer auction sites.

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Rick DeMott
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