Business Week 35 Disney Beefs Up Digital

The Walt Disney Co. last week continued its aggressive expansion into the Internet with two investments. Disney purchased 60% equity stakes in Soccernet, the world's most popular Web site for soccer fans, and Toysmart.com, an e-commerce retailer of toys that teach. The companies did not release financial details but said both deals involve leveraging Disney's vast marketing power to promote the investments.



KirchMedia posts profits

Traditionally secretive KirchMedia, the core division of KirchGroup, made its year-end figures public for the first time. The company posted pretax profit of DM134 million ($71 million) and revenue of DM3.69 billion ($1.97 billion) for the year ending Dec. 31. About 50% of its revenue was generated by its free TV broadcasting operations, while 45% came from the company's rights trading division.



Distributors set foreign record

Major U.S. distributors posted a record $5.7 billion in film rentals from foreign theaters during 1998. That topped the previous year's mark of $5.3 billion and set a record for a sixth straight year. Japan topped Germany to lead the pack in foreign rentals, hitting a record-high $2.7 billion, 19% better than the previous year.



Clips

Eagles drummer Don Henley sued Paramount Pictures, alleging that the studio owes him more than $1 million for creating a song that was to be used in upcoming feature "Double Jeopardy" ... Paramount Parks closed seven rides at its five amusement parks because of concerns stemming from fatal accidents on two rides ... Rupert Murdoch's News Corp. joined the bidding to buy a stake in Deutsche Telekom's German TV network ... BBC Worldwide is seeking U.S. partners for a new series of magazine joint ventures planned for the United States in its bid to expand overseas revenue.

-- Paul Bond