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WEST COAST REPORTS HAVE DISNEY EYEING STAKE IN STARWAVE
Published February 14, 1997
Walt Disney has signed a letter of intent to acquire a minority share in Starwave Corp., which produces such web sites as ESPNet SportsZone, NBA.com, NFL.com, and NASCAR Online, an executive "knowledgeable about the deal," tells Leslie Helm of the L.A. TIMES. Disney and representatives of Paul Allen, who owns Starwave, "declined to comment." The executive told Helm that "in an unusual twist," the preliminary agreement calls for Disney to "acquire roughly one-third of Starwave but to take over management control." The two sides are "close to signing a final agreement," and sources tell Helm "the final deal could involve a bigger stake by Disney" (L.A. TIMES, 2/14). The HOLLYWOOD REPORTER notes "an executive close to the negotiations" says that the talks "hinge on the size of Disney's stake and could conclude within two weeks" (HOLLYWOOD REPORTER, 2/14).