Web Disney Dumps $1 Billion

files/pictures/picture-35.jpgDisney's Internet arm Go.com has announced a loss of $1.06 billion in
fiscal 1999. Disney's Web division was formed three months ago to combine
its Internet search engine Go.com, a co-venture with Infoseek, with
Disney's other online assets, which includes ESPN.com, Disney.com and
ABCNews.com. The loss, which includes $956 million in depreciation and
amortization expenses, widened from a loss of $991 million a year earlier
and includes all of Go.com's new-media properties. Much of the negative
performance is being attributed to losses inherited from the purchase of
Infoseek. Go.com's Web sites are still in "investment mode" said Disney
Interactive president Steve Wadsworth. He also hinted that the future
doesn't look much brighter financially, at least for awhile. Who knows what
Disney's losses will peak at next year after their fight over similar
traffic-light logos with GoTo.com ends. Disney estimates they could lose $2
million to $40 million in branding costs if it is forced to change the icon.