His mission: first revival for Prodigy, then buyout
Article Abstract:
Prodigy Pres Edward Bennett intends to transcend his role as head of the online service to become its owner. Almost one year after becoming president of the faltering online service, Bennett is seeking investors to back him in a management buyout deal. Bennett also announced plans to lay off 100 of the company's work force of 680. Bennett wants to take Prodigy in a new direction, transforming the online service into a 'new-media studio'. Under Bennett's plan, Prodigy would back independent producer of information, entertainment and special-interest sites on the Web. Regardless of the outcome, Bennett faces a formidable challenge as head of Prodigy. The online service has fallen behind America Online and Compuserve in competition for market share. Moreover, observers are extremely pessimistic about the company's prospects. Bennett insists that Prodigy can be redeemed and is actively redefining its operations to regain competitive advantage.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
America Online reaches big marketing deal with Tel-Save
Article Abstract:
AOL has announced a $100 million marketing agreement with the long distance reseller, Tel-Save Holdings, in which Tel-Save will pay AOL to sell its phone service online. The agreement is seen by industry analysts as a move by AOL to increase revenue through advertising and online commerce and a move away from its dependence on subscriber fees. For Tel-Save the marketing deal with AOL is an inexpensive way for the company to broaden its customer base, which caters primarily to corporations, by including residential businesses. When the marketing agreement was announced Tel-Save's stock rose $7.375 and closed at $20.50 a share. Tel-Save's chairman Daniel Borislow said the company agreed to pay AOL a percentage of its profits from the sales made through the online marketing. The $100 million is an advance to be credited toward future marketing payments.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: New policy by America Online pressures content providers. Adapting 60's democracy to the Internet. Is Internet gossip? Let's ask Mr. Showbiz
- Abstracts: AT&T plans to discontinue Network Notes. America Online moves to placate its angry users. BBN steps out of the shadows and into the limelight
- Abstracts: The growth, and pain, of America Online. Prodigy plans layoffs in preparation for sale. Millionaires by the dozen: they know computers, who knows them?
- Abstracts: Japan aims to regain semiconductor leadership. Deadline nears for renewal of chip pact; freer market in Japan reduces urgency for accord with U.S
- Abstracts: 77,800 managers at AT&T getting job buyout offers. AT&T's romancing of John R. Walter. AT&T choice under fire: did search go wrong?