CBSN Is Gone

Algerian policemen inspect damages of the buildings of Prime minister's offices following a suicide car exploded near the Governmental Palace in the center of Algiers City April 11, 2007.
Getty Images/Fayez Nureldine
The Walt Disney Co. will discontinue its money-draining Internet division and close its Web site — a move that will result in 400 layoffs, the company said Monday.

As a result, the stock for the Walt Disney Internet Group will be converted into shares of Disney common stock.

The Internet group will continue to function as a division of the company. Disney will also continue many of its popular Web sites, such as,, and others.

"The Internet continues to be a central focus of our company's business strategy," Michael Eisner, Disney's chairman and chief executive officer said in a statement. "We believe this action should help us gain greater competitive advantage as we leverage Disney's creative content, brands and other assets."

The Internet Group has lost money every quarter since it debuted in January 1999. Last September, the company introduced a new site and strategy, abandoning its attempt to be a general purpose Web "portal."

The new site focused on leisure and entertainment and more prominently feature Disney's other sites.

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