The Walt Disney Co. became the latest media company to slash online operations, saying Monday it will shut the Go.com Web site and cut 400 jobs.
The Walt Disney Internet Group will be folded back into the company, operating under the same management as a Disney division overseeing such Web sites as Disney.com and ESPN.com.
The move comes only weeks after News Corp. said it was shutting down its online division and eliminating more than 200 jobs.
Disney said it will continue to operate a streamlined Go.com site while it moves various services and registered users to its other sites.
Disney President Robert Iger said the decision came after it became clear Go.com would never become an industry leader and the separate stock would provide neither money for investment or acquisition. The outstanding shares of the Internet Group tracking stock will be converted into 0.19353 of a share of Disney common stock in March.
Go.com ranked fourth among Internet portals, behind Yahoo!, MSN and AOL, according to Media Metrix’s figures for December.
Disney said it will take a $790 million charge for the write-off of intangible assets and a charge of $25 million to $50 million for severance and the write-off of fixed assets.
