Disney's Buena Vista Internet Group has tapped N2K (NTKI) as the exclusive online music retailer for Disney.com and ABC.com. No financial terms were disclosed, but the companies said that under their agreement N2K's Music Boulevard Network will develop the "Disney Music at Music Boulevard" boutique, selling those crazily popular Disney titles that little kids are always singing, including the soundstracks from The Lion King, Beauty and the Beast, and Aladdin, along with the rest of Disney's music library.
For ABC.com, N2K "will leverage the network's popular music-related specials, such as the American Music Awards and the In Concert series," the companies said, creating sites where people can listen to audio clips and get more information about their favorites -- and where they can link to co-branded Music Boulevard pages to place purchase orders.
Jon Diamond, vice chairman of N2K, said in a canned statement that Disney's "market strength, combined with its ability to create unique commerce and advertising partnerships with online and offline promotional opportunities, makes this a significant alliance."
N2K is locked in a fierce battle with CDNow for dominance of the online music realm. But with music sales on the Net expected to rise from about US$300 million this year to $2.5 billion in 2002, others have been lured into the field -- including online book kingpin Amazon.com, which launched a music business earlier this month.
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Rockwell unwell: Rockwell International (ROK) said Monday it would spin off its semiconductor unit and fire 3,800 people, conceeding an unprofitable and cutthroat business. The global electronic controls and communications company said it will take a $625 million charge related to the job cuts and expects annual pre-tax savings of $200 million by the year 2001 from the restructuring.
The semiconductor unit makes chips for cellular phones, personal computers and wireless modems. Rockwell said if it gets a favorable ruling from the Internal Revenue Service, it will sell the unit to shareholders by the end of 1999. Combined with continuing cost-reduction initiatives, the restructuring will generate about $100 million of pre-tax savings, or 33 cents per share, in fiscal 1999, and will yield pre-tax savings of $200 million by 2001 and annually thereafter.
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Compaq begins axing: Compaq Computer (CPQ) said Monday it will fire 5,000 factory workers as part of its previously announced plans to cut 17,000 jobs, following its recent acquisitions of Digital Equipment and Tandem Computer.
The job cuts will be in plants in Singapore, China, Taiwan, Japan, Australia, Scotland, Brazil, and Canada, as well as at facilities near its headquarters in Houston.
Compaq, the world's biggest personal computer maker, said the goal of its manufacturing streamlining efforts is to deliver 95 percent of all Compaq products anywhere in the world within five days or less.
In Singapore, the Digital Equipment will be consolidated at the existing Compaq manufacturing plant.
Compaq will close its plant in Shenzhen, China, and its primary products, enterprise power supplies, will be shifted to Compaq supplier partners in the same province.
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Facelift: America Online (AOL) will reportedly unveil new software today overhauling its CompuServe unit, which it acquired nearly six months ago. The Wall Street Journal reported that AOL hopes the new software, aimed at reviving the once dominant online service, will attract new users without alienating devoted customers.
The strategy is to give CompuServe's technology- and business-driven customers a more serious venue, as opposed to the chat and celebrity driven AOL forums, the paper said. AOL hopes to make CompuServe profitable within a year.
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AT&T dumps paging: AT&T said it agreed to sell its AT&T Wireless Services paging unit to Metrocall for $205 million in cash and stock.
AT&T (T), which announced its plans to get out of paging late last year, said the sale will allow it to focus on its more strategic cellular phone business.
Metrocall (MCLL) said the purchase will expand its reach throughout the United States and will increase its subscribers by 1.2 million. The company also signed a five-year national distribution agreement with AT&T.
