Acquisition talks are continuing at a "serious level" between interactive agency Modem Media
, Westport, Conn., and holding company True North Communications, Chicago, but a deal is not imminent, said Jack Kraft, a former executive with Leo Burnett
Co. and Young & Rubicam who has been acting as a Modem adviser. "There are expectations on both sides which have to be met," he said. "There's been a clear articulation of strategy for the development of the company [Modem]. We know what's going to happen; it's just a matter of with whom." True North declined to comment.
Disney Interactive is said to be searching for a new agency to handle its $10 million videogame business. The account is now handled by Rogge Effler & Partners, Los Angeles.