The moves yesterday involved shutting a Seattle office, which had about 35 employees, almost all of whom worked in the Internet unit.

Mr. Brown said he expected the Internet unit to generate revenue of about $650 million in the fiscal year beginning next April.

Also like other Internet units, it has undergone several high-level management changes, which have led some staff members to question the clarity of management's focus.

Virtually every conglomerate rushed out an Internet unit.

The Internet unit's saving grace could be that it will continue to add millions of subscribers.

France Télécom also recently bought back shares in its Internet unit.

That is why it has decided to pull the Internet unit back into the fold.

That is 17 cents below the price at which the Internet unit's shares closed on Friday.

It focuses on companies like Barnes & Noble, whose affiliated Internet units do not charge or collect the state's 7.25 percent sales tax.

The venture would have combined the companies' high-speed Internet units to serve 300,000 customers over cable television lines, mainly in Europe.