COMPANY TOWN ANNEX

Multimedia Start-Up Scores Disney Deal: Two-year-old interactive firm 7th Level Inc. and Disney Interactive will co-develop a CD-ROM game based on Walt Disney Co.’s “Lion King” characters Pumbaa and Timon, the companies said. The deal is something of a coup for 7th Level, whose proprietary animation technology distinguished it from the dozens of multimedia start-ups coveting an alliance with Disney. The Texas-based firm also promised Disney it could have the game ready in time for the Christmas season. Disney Interactive hopes the new game--its first for Windows CD-ROM--will help it move beyond the “edutainment” market it has focused on so far. Disney will market and distribute the title.