Some 400 people will lose their jobs when Walt Disney Co. shuts down its foundering internet division and closes its Go.com Web site, the company announced Monday.
Walt Disney Internet Group stock will be converted into shares of Disney common stock as a result.
The Internet group will remain a division of the company. Disney will also continue many of its popular Web sites, such as ESPN.com, Disney.com, ABC.com and others.
"The Internet continues to be a central focus of our company's business strategy," Michael Eisner, Disney's chairman and chief executive officer said in a statement. "We believe this action should help us gain greater competitive advantage as we leverage Disney's creative content, brands and other assets."
The Internet Group has lost money every quarter since it debuted in January 1999. Last September, the company introduced a new site and strategy, abandoning its attempt to be a general purpose Web "portal."
The new site focused on leisure and entertainment and more prominently feature Disney's other sites.
— The Associated Press contributed to this report
