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Web Disney Dumps $1 Billion

Disney's Internet arm has announced a loss of $1.06 billion infiscal 1999. Disney's Web division was formed three months ago to combineits Internet search engine, a co-venture with Infoseek, withDisney's other online assets, which includes, The loss, which includes $956 million in depreciation andamortization expenses, widened from a loss of $991 million a year earlierand includes all of's new-media properties. Much of the negativeperformance is being attributed to losses inherited from the purchase ofInfoseek.'s Web sites are still in "investment mode" said DisneyInteractive president Steve Wadsworth. He also hinted that the futuredoesn't look much brighter financially, at least for awhile. Who knows whatDisney's losses will peak at next year after their fight over similartraffic-light logos with ends. Disney estimates they could lose $2million to $40 million in branding costs if it is forced to change the icon.

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