Stock Watch: Streaming Media Deal Powers Digital Island

Digital Island, Inc. (Nasdaq: ISLD) climbed 10 11/16 to 45 3/16 Tuesday after the company announced an agreement to team with Compaq, Intel Corp. (Nasdaq: INTC) and Microsoft Corp. on a streaming media project.

The agreement includes equity investments totaling a combined $45 million from the three tech giants. Compaq will also provide $50 million in equipment lease financing.

The companies said the network’s reach will be the Internet’s largest, and “roughly comparable” to that of a prime-time TV show. The global market for streaming media will grow to $2.5 billion by 2004 from $78 million this year, according to Jupiter Communications.

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