Mouse mulls sale of Teuton Infoseek stake
DT's T Online, Axel Springer, Holtzbrinck eyeing search engine
Deutsche Telekom, which is looking to acquire the Mouse House's German Web holdings for its own Internet service provider T-Online, revealed that the negotiations were under way Friday.
A market value of Infoseek Deutschland was not disclosed, nor were details on whether the acquisition would be a stock or cash deal.
Wooing coin, ads
T-Online, Europe's largest ISP, would make Infoseek its official search engine, a move that it believes would make its business more attractive to consumers and advertisers.
Telekom already owns 25% of German Infoseek and a deal would give it a strong hold on the search engine, which is Germany's No. 2 behind Yahoo!
Other investors in German Infoseek are publishing house Axel Springer and Holtzbrinck Networks, which also holds a 25% stake.
In January, Disney abandoned plans to operate Go.com as a general Internet portal, saying the struggling site would be refocused on recreation, entertainment and leisure to attract more Netizens and boost ad dollars. Disney formed Go after buying U.S.-based Infoseek last fall.
Worldwide work
Although giving it much needed cash and stock, a sale of its stake in German Infoseek would limit Go's reach in the 'Net-savvy country. Infoseek owns 10 international properties from Asia to Europe.
Analysts said the move fits well with Disney's commitment to shed noncore assets.
Last month, Go sold off its corporate Internet search business Ultraseek to Inktomi for $341 million in cash and stock.
Shares of Go, a tracking stock, fell $1.13 on Friday to close at $10.
