Disney May Buy Balance of Infoseek

Walt Disney Co. said it is in talks to buy the 57% of Infoseek Corp. that it doesn’t already own and may combine the No. 4 Internet search directory with its own online properties.

Disney said it may buy the rest of Infoseek’s shares, valued at about $1.53 billion at today’s closing price, in exchange for a new class of Disney stock that would track the combined performance of Infoseek and Disney’s Internet operations.

Disney’s move comes after it bought 43% of Infoseek last year and the two companies introduced their Go Network of Internet sites, which are trying to attract users in the face of stiff competition from rivals such as No. 1 Yahoo Corp.

Disney and Infoseek jointly own such sites as ESPN.com, NFL.com and the Mr. Showbiz entertainment news site. Disney also owns several sites for its Disney entertainment brands and its ABC network.

“This would give Disney much greater control in terms of how to focus this Infoseek property,” said Jack Staff, an analyst at Zona Research Inc., a market research firm.

The companies “have not reached any final determination as to whether to proceed with any such transaction, or with respect to its structure or terms,” according to a Disney filing with the Securities and Exchange Commission.

A Disney spokeswoman and a spokeswoman for Sunnyvale, Calif.-based Infoseek declined to comment.

Disney operates several Web sites in its Disney Online unit, including Disney Blast, a subscription service; ABC.com; and the Disney Store, where Internet users can purchase Disney videos, books, clothing and toys. The company also has related Web sites such as Family.com.

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* INTERNET INCUBATOR: Executives at EarthLink Network and Disney’s online operations said they’re forming an Internet business incubator. C1