Eisner launches Internet video studio Vuguru

By Kenneth Li

NEW YORK (Reuters) - An investment firm run by former Walt Disney Co. Chief Executive Michael Eisner has launched a studio that will produce and distribute videos for the Internet, portable media devices and cellphones, as Hollywood strives to reach tech-savvy viewers online.

The studio, Vuguru, has signed for its first project, "Prom Queen," a scripted 80-episode mystery consisting of 90-second installments described as "a blend of love, gossip, and betrayal" during the final two weeks of high school.

"Prom Queen" debuts on April 2 and will be available at Vuguru's site PromQueen.tv, online magazine Ellegirl.com and YouTube.

It will also be available on Veoh Networks, co-financed by Eisner's investment company Tornante Co.

"The entire concept here is content is king," Eisner said in a phone interview. "What will drive traffic is interest in the subject matter."

Eisner's new studio is part of Hollywood's courting of Internet businesses, which they see as fertile ground for new viewers unreachable by traditional outlets like television.

Since leaving Disney in 2005, Eisner has carved out a new career as an investor in Internet and media businesses, including the purchase of start-up media business Team Baby Entertainment, which produces sports-themed DVDs for kids.

Eisner's firm also announced in March it would buy Topps Co., maker of baseball trading cards and Bazooka gum, in an estimated $385 million deal.