GO.com Makes Marketing Deal with Pets.com, Takes Stake

GO.com, the Internet arm of the Walt Disney
Co., Thursday agreed to give pet supplies e-tailer Pets.com promotion on its network, as well
as marketing on ABC, in exchange for a stake in the start-up.

“This agreement is a significant extension of our current marketing
relationship with other GO.com Web sites such as Disney.com and Family.com, which has been among our most
successful in terms of driving qualified traffic to Pets.com,” says Julie
Wainwright, chief executive officer of Pets.com.

The deal calls for GO.com to get a significant chunk of equity in Pets.com.
In exchange, Pets.com will receive promotion on GO.com’s family of Web
sites, which include
ABC.com, ABCNEWS.com, Disney.com, ESPN.com, and Family.com.

Notably, the deal also includes time on the ABC television and radio
networks, a move that’s part of a growing trend among portal players with
ties to offline media properties.

As part of the agreement, Pets.com will be able to make special promotional
offers to users of Disney.com and Family.com. There will be joint
promotions, event sponsorships, and possible merchandise development.

In
addition, Pets.com will provide content to GO.com sites and will develop
exclusive content for Disney.com in particular.