Disney to Sell Ultraseek to Inktomi

Walt Disney Co. has agreed to sell an obscure but promising portion of its Internet business to Inktomi Corp. for about $340 million, mostly in stock, the companies said. The sale involves Ultraseek Corp., a subsidiary of Disney’s Go.com that provides search software for corporate networks. Some analysts believe Ultraseek is poised for significant growth. Disney is consolidating its online properties after retreating from efforts to compete with Yahoo and other sites as a broad Internet portal. According to analysts, Ultraseek is expected to produce about $16 million in revenue this year, or about 3.5% of Go.com’s total. Inktomi, based in Foster City, Calif., is paying a price equivalent to 17% of Go.com’s market capitalization. Go.com shares closed at $12.50, up 19 cents on the NYSE.