WEST COAST REPORTS HAVE DISNEY EYEING STAKE IN STARWAVE
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).