Netscape bid seen by America Online
Article Abstract:
America Online is poised to acquire Netscape in a stock swap valued at approximately $4 billion, according to executive insiders. The proposed transaction also would involve a joint marketing and development partnership between America Online and Sun Microsystems. The announcement of a completed deal could take place as soon as this morning, but participating executives noted some outstanding details that still required negotiation. A completed deal would unite companies that hold significant stakes in online services, Internet software and electronic commerce. Their combined 1997 revenues exceeded $12.4 billion. By comparison Microsoft, a rival of all three companies, reported 1997 revenue of more than $14 billion. Netscape has struggled since May 1997, with its Navigator browser software losing its market dominance to Microsoft's Internet Explorer. Government officials said the proposed deal should not impact its antitrust case against Microsoft, and one executive dismissed the idea of a business conspiracy against Microsoft.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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Conquering the Internet; America Online sees Netscape acquisition as a big step toward its ambitious goals
Article Abstract:
America Online believes an acquisition Netscape would establish the company as the market leader in the emerging Internet businesses of online media and electronic commerce. Negotiations between the companies are continuing, with America Online offering $4 billion for the Web browser software pioneer. America Online, which leads US dial-up online services with 14 million customers, already plays a key role in blending new media and electronic commerce. This development holds promise for more interactive participation from the public as well as direct online buying. Observers expect Microsoft to compete heavily in these two areas. Microsoft's assets include its MSN online service, its MSNBC Internet news service venture with NBC and its Microsoft Windows that controls more than 90% of the PC OS market. A complicated aspect of the proposed deal involves Sun Microsystems, which has reached a joint marketing and development partnership with America Online.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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