As anticipation builds over the planned release of Go Network, slated for late November or early December, observers are still puzzling over Go’s murky parentage. The site is the child of a complex deal between Infoseek Corp and The Walt Disney Company, under which Disney agreed to acquire 43% of Infoseek. In exchange for 25 million shares of its stock, Infoseek gained full control of Disney’s web development subsidiary Starwave. Infoseek will also share control of ABC.COM and ESPN.COM with Disney subsidiaries ESPN and ABC. A further $70m bought Disney 2.6 million more of Infoseek’s shares. If the deal remains sweet, Disney can buy its way up to 50.1% of Infoseek. Executives say the complexity of the deal maximizes returns for shareholders. That may be true, but it also leaves Infoseek exposed to much of the risk of the venture.
