Disney, Compaq in Marketing, Technology Deal

Compaq Computer Corp. will be the preferred technology provider for the Walt Disney Internet Group, under a three-year agreement announced Thursday.

The marketing and advertising agreement means Compaq will spend tens of millions of dollars to advertise on the Walt Disney Internet Group Web sites, while Disney will buy tens of millions of dollars in Compaq hardware, officials of the two companies said in a conference call. The deal also includes distribution of Walt Disney Internet Group content on Compaq consumer products and prominent placement of Compaq's name on Walt Disney Internet Group sites.

Under the terms of the agreement Compaq equipment will run some of the most popular sites on the Web, including Disney.com, ESPN.com, ABC.com and ABCNEWS.com.

Compaq will provide equipment, technology and services to the Walt Disney Internet Group, including Proliant servers, desktops and laptops. The arrangement also calls for Walt Disney Internet Group to consolidate its Windows-based server architecture on Compaq Proliant platforms.

(More to follow)


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