Microsoft alliance with MCI creates an on-line giant

Article Abstract:

MCI and Microsoft will combine their vast resources in an effort to provide a full range of online services and improve present competition with established online providers such as America Online. The MCI/Microsoft effort will concentrate on marketing the newly created Microsoft Network, leveraging Microsoft's enormous installed base of users and MCI's substantial marketing strength. MCI will reduce its involvement with News Corp in an online venture announced in Sep 1995, and Oracle is expected to assume a significant portion of MCI's investment. The unpredictable nature of the interactive services and Internet markets is causing a large number of unusual alliances between companies of diverse interests. Companies will often sign an agreement with one partner, only to have said partner sign an agreement with the original company's rival a short time later.

Microsoft Corp., Services, Contracts, Cooperative agreement for product marketing, Contract agreement, MSFT, Company services, MCI Communications Corp., MCIC, Marketing agreements

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Prodigy Services managers mull buyout offer

Article Abstract:

The management of Prodigy Services is engaged in negotiations with parent company Sears Roebuck in an attempt to acquire complete control of the online service. Prodigy's offer to Sears for its 50% share of the company is reported to be $250 million, a number that would suggest that Prodigy's market valuation-per-subscriber is considerably less than rival America Online. Sears has been actively attempting to divest itself of its half of the online service, hoping to have completed an agreement before the end of 1st qtr 1996. However, it is unclear whether $250 million will be enough to obtain Sears' share, since Sears' and partner IBM have invested approximately $1 billion in Prodigy.

Mergers, acquisitions and divestments, Finance, Company acquisition/merger, Sears, Roebuck and Co., S, Prodigy Services Co., Prodigy (Online information service)

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