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Yahoo! up on Disney talk
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December 12, 2000: 7:28 p.m. ET
Disney Internet Group rumored investment in Yahoo! causes shares to rise 6%
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NEW YORK (CNNfn) - Shares for Yahoo! Inc. spiked Tuesday on rumors that Walt Disney Internet Group might make a major investment in the Web company.
Santa Clara, Calif.-based Yahoo! (YHOO: Research, Estimates) shares rose $1.94, nearly 6 percent, to close at $35.81.
The rumors began when ABCNews.com, a Disney affiliate, announced a distribution deal Tuesday where Yahoo would feature video, audio and text from ABCNews.com.
"This is a content distribution agreement with Yahoo!," said Michelle Bergman, a Disney Internet Group spokeswoman.
 However, Bergman declined to comment on an investment. Yahoo! also declined to comment.
Burbank, Calif.-based Walt Disney Co. controls the Internet Group.
The rumors represent an about face for Yahoo!, which has seen its shares decline nearly 86 percent from its 52-week high of $250.06. Last year, Yahoo! was touted as a potential acquirer of Disney Co. but is now seen as an acquisition target.
Internet analyst Henry Blodget, of Merrill Lynch, said the pending merger of America Online Inc. and Time Warner Inc. would likely spur other media companies to create "powerful media strategies." Time Warner is the parent company of CNNfn.com.
But Blodget doubted that Yahoo! management would sell the company at its current depressed price.
Walt Disney Co. (DIS: Research, Estimates) lost 6 cents to close at $30.31 while the Walt Disney Internet Group (DIG: Research, Estimates) gained 50 cents to $5.94 Tuesday.
-- from staff and wire reports 
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