GoTo.com (Nasdaq: GOTO) cruised ahead 20 percent Friday on news The Walt Disney Co. (NYSE: DIS) will pay it $21.5 million as part of a settlement in its trademark- infringement lawsuit.
GoTo.com, a search site and Web portal, sued Disney in February 1999 in the United States District Court in Los Angeles, claiming Go.com's traffic light-like yellow square and green circle logo bore too much of a resemblance to GoTo.com's logo. Go.com then pulled the traffic light logo and put "Go.com" with a yellow arrow at the top of its home page.
Along with the payment, Disney agreed to stop using the disputed logo and the current replacement, and they agreed to drop a counterclaim against GoTo.com.
GoTo.com also mentioned that the $21.5 million cash payment gives GoTo.com enough funds in reserve so that it shouldn't have to raise more money before it turns profitable.
Shares were up 3 to 18 1/8 Friday. The stock has continued to crumble from its 52-week high of 114 1/2, despite the fact that the company topped first quarter estimates in April.
According to First Call's consensus estimates the company isn't expected to reach profitability any time before the fourth qaurter of 2001.
GoTo.com competes with the likes of Yahoo! (Nasdaq: YHOO), Excite@Home (Nasdaq: ATHM) and AltaVista, which is owned by CMGI (Nasdaq: CMGI).