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November 29, 1998

NETSCAPE SQUEEZES INFOSEEK AFTER DISNEY DEAL

By CBR Staff Writer

Infoseek Corp, the Sunnyvale, California-based search engine-cum-portal company, has suffered as a result of a new deal agreed with Netscape Communications Corp. It will have to pay 20% more for traffic its receives from Netcenter – but the amount of traffic will fall. While Infoseek will continue to be a preferred search provider on Netcenter, it will only be allocated 5% of users who do not specify a search provider compared with 15% at present. The new arrangement follows a deal between Infoseek Corp and Walt Disney Co which involved Disney taking a 43% stake in Infoseek (CI No 3,542). The two organizations are about to launch Go Network portal site combining content from ABCnews.com, Disney, Infoseek and Starwave, a move that offers competition to Netscape and AOL.

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