Disney's Go Network has inked a 4-year agreement with eBay making it the
exclusive on-line auction site for Walt Disney's Web properties. Under
terms of the deal, eBay and the Go Network will create two co-branded
auction sites -- one to provide person to person transactions, the other
merchant to consumer sales, featuring goods from Disney's properties and
ESPN, among others. Disney will market the two sites through its Go
Network, a portfolio of Web sites that includes Disney.com, ABC.com and
ESPN.com, as well as its off-line properties, like the ABC Network, Disney
Channel and its theme parks. Financial terms of the deal were not
disclosed. "This agreement is critical to Go.com's new strategy of focusing
our portal on entertainment, recreation and leisure activities," said Steve
Bornstein, chairman of Go.com. "The combination of exclusive merchandise
from across the Disney company, terrific distribution from the Go.com
family of Websites, Disney's unparalleled promotional capabilities, and
eBay's vibrant on-line community should create a world-class on-line
trading environment." The Go.com auction site with UBid, which launched
four months ago, will continue through the duration of the eBay deal.
Go.com's auctions will now be incorporated into the new sites, with
www.ebay.go.com expected to bow in the second quarter. The company auctions
will coincide with Disney.com's celebration of the 100th anniversary of
Walt Disney's birth, followed by auctions highlighting Disneyland's 45th
anniversary. The Disney agreement resembles deals that eBay finalized last
year with America On-line, under which co-branded auction sites were
created for AOL.com, CompuServe and the Internet service provider's other
on-line brands. As part of that deal, eBay is paying AOL US$75 million but
is not sharing any transaction fees from the co-branded auctions. With the
new Disney deal, eBay for the first time will launch separate merchant to
consumer auction sites.