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.