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Infoseek connects to AT&T
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May 8, 1998: 12:41 p.m. ET
Internet content provider to ally with WorldNet, host customer center
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NEW YORK (CNNfn) - Infoseek Corp. joined AT&T in a three-year relationship to create a new portal to the Internet driven by new online software applications which AT&T will provide, the companies announced Friday.
Under the arrangement -- similar to one signed between AT&T and Infoseek search-engine rival Excite (XCIT) -- Infoseek will launch "Infoseek Online powered by AT&T WorldNet Service."
The Internet service will provide direct access to the Internet via AT&T's digital network, the companies said, and will also serve as a distribution point for multimedia communications programs currently in development at AT&T (T).
"This is another step AT&T is taking to accelerate the Internet's evolution from an information resource to a powerful form of multimedia communications," said Dan Schulman, president of AT&T WorldNet Service.
The service is slated to go online in the next few months.
As with the Excite deal, Infoseek Online is expected to compete against Yahoo! Online, the planned joint venture of Yahoo! Inc. (YHOO) and AT&T rival MCI Communications Corp. (MCI)
The AT&T software will grant Internet users the ability to convert text-based connections into voice communication and vice versa, allowing Web pages to activate telephone calls directly from the Internet.
The site will also provide content - news, education and information -- to its users, the companies said.
"Together, (AT&T and Infoseek) allow our customers to take full advantage of the benefits of an instantly linked, intelligent information and services network," said Harry Motro, president and CEO of Infoseek.
As part of the arrangement, Infoseek's website will also host an AT&T customer service center offering a full range of subscription information to basic AT&T (T) communications services.
Infoseek stock (SEEK) climbed on the news, gaining 1-1/16, or 3.49 percent, to 31-1/2. 
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AT&T WorldNet
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