Infoseek Falls on News of Disney Deal

Shares of Infoseek Corp. tumbled 11 percent on news that Walt Disney Co. will merge Infoseek with its Buena Vista Internet Group. Elsewhere, Internet stocks slumped across the board ahead of earnings reports which will begin to roll out later this week.’s Internet Stock Index ended off 20.42, or 3.58 percent, to 549.36 and the Nasdaq Composite lost 2.45 to 2,790.62. The Dow Jones industrial average went in the reverse direction, rising 7.28 to 11,200.98 — a new record.

Infoseek Corp. (SEEK) tumbled 5-9/16 to 45-15/16 on news that Walt Disney will combine Buena Vista Internet Group and Infoseek, folding them into its unit. Disney will also create a separate tracking stock for its Internet assets.

Many of the other sector leaders ended lower, including Yahoo! Inc. (YHOO), off 9-3/4 to 150-1/4, America Online Inc. (AOL) down 6-1/4 to 122 and eBay Inc. (EBAY) fell 7-7/8 to 127-7/8.

The online auctioneer suffered a three-hour outage on Saturday, it’s fourth failure over the past month.

Other familiar names falling included NetBank Inc. (NTBK)down 2-7/16 to 33-5/16, Inc. (PCLN) lost 4-5/32 to 104-27/32 and Inktomi Corp. (INKT) slipped 8 to 132.

One of the day’s strongest gainers was recent IPO Ariba Inc. (ARBA) up 12-7/8 to 112-5/8

Online brokers were mixed. Ameritrade Holding Corp. (AMTD) lost 2-1/16 to 36-1/16. The company Monday posted a fiscal third-quarter profit of $8.9 million, or 5 cents a share, beating analysts’ estimates of a 3-cent profit. Elsewhere in the sector, E*Trade Group Inc. (EGRP) lost 1-7/16 to 38-5/16, National Discount Brokers Group Inc. (NDB) fell 2-3/4 to 51-7/16, Southwest Securities Group Inc. (SWS) lost 1-7/8 to 65 and Siebert Financial Corp. (SIEB) ended down 15/16 to 25-3/16

Several familiar names fell in advance of earnings, including CNET Inc. (CNET), down 4-9/16 to 45-7/8 and EarthLink Networks Inc. (ELNK), fell 6-7/8 to 60-7/8.

Ask Jeeves Inc. (ASKJ) lost 4-1/8 to 54-1/2. The search engine, which recently went public, was sued late last week by IPLearn LLC. IPLearn said Ask Jeeves’ interactive butler violates their patents.

EarthWeb Inc. (EWBX) gained 2-1/2 to 45. The business-to-business Internet publisher was rated a “strong buy” by Pacific Crest Securities.

ALL NEW!’s HotWatch a monthly e-mail subscription for $99,
featuring Internet Stock Report’s Steve Harmon, and his top 10 noteworthy
Internet stocks for the month. Each month you will receive in-depth
analysis on the top 10 Internet stocks to watch with the information you need to assess
the fast-paced nature of Internet stocks. Staying on top of market changes in the
Internet Stock market is what counts. For $99 per year, you receive 12 timely
issues sent to you by e-mail. Don’t wait, our next issue will be out before
you know it with a whole new perspective on the market.
Sign up today at: e-newsletters

Get the Free Newsletter!

Subscribe to our newsletter.

Subscribe to Daily Tech Insider for top news, trends & analysis

News Around the Web