advertising information

CNN.com
 MAIN PAGE
 WORLD
 ASIANOW
 U.S.
 LOCAL
 POLITICS
 WEATHER
 BUSINESS
 SPORTS
 TECHNOLOGY
   computing
   personal technology
   space
 NATURE
 ENTERTAINMENT
 BOOKS
 TRAVEL
 FOOD
 HEALTH
 STYLE
 IN-DEPTH

 custom news
 Headline News brief
 daily almanac
 CNN networks
 CNN programs
 on-air transcripts
 news quiz

  CNN WEB SITES:
CNN Websites
 TIME INC. SITES:
 MORE SERVICES:
 video on demand
 video archive
 audio on demand
 news email services
 free email accounts
 desktop headlines
 pointcast
 pagenet

 DISCUSSION:
 message boards
 chat
 feedback

 SITE GUIDES:
 help
 contents
 search

 FASTER ACCESS:
 europe
 japan

 WEB SERVICES:
COMPUTING

AOL buys Netscape, joins Sun in Java deal

November 24, 1998
Web posted at: 350 PM EST

by Rebecca Sykes

From...

(IDG) -- America Online today announced it will acquire Netscape in a stock-for-stock transaction worth $4.2 billion.

AOL also announced a strategic alliance with Sun Microsystems, including plans to develop Internet devices using Sun's Java programming language.

Under the terms of AOL's deal with Netscape, Netscape stockholders will receive 0.45 shares of AOL common stock for each share of Netscape stock, according to a statement from AOL. Jim Barksdale, Netscape's president and chief executive officer, will join AOL's board of directors after the deal closes, the statement said. Pending regulatory approval, the acquisition is expected to close in the second quarter next year, it said.

AOL will continue to offer Microsoft's Internet Explorer to its AOL online customers, according to the statement. Netscape's Navigator browser is locked in battle with Explorer, and some observers had speculated that an AOL-Netscape deal could eject Explorer from AOL's offerings. AOL will also offer Netscape client software to its users, downloadable from the Web using AOL's ICQ instant messaging capability, according to AOL.

MORE COMPUTING INTELLIGENCE
  IDG.net home page
  Network World Fusion home page
 Free registration required to access Network World
  Free Network World Fusion newsletters
  Get Media Grok and The Industry Standard Intelligencer delivered for free
 Reviews & in-depth info at IDG.net
    IDG.net's bridges & routers page
  IDG.net's hubs & switches page
    IDG.net's network operating systems page
  IDG.net's network management software page
  IDG.net's personal news page
  Questions about computers? Let IDG.net's editors help you

AOL's deal with Sun, which is separate but related to its Netscape acquisition, encompasses a three-year development and marketing agreement, according to AOL. AOL and Sun together will develop the next version of Netscape's Navigator and Communicator software clients and AOL will use Java in its e-commerce offerings, the company said.

AOL and Sun also will jointly develop a suite of easy-to-deploy software designed to help companies and Internet service providers engage in electronic commerce, according to AOL. AOL will buy systems and services from Sun worth $500 million at list price through 2002, AOL said. For its part, AOL will receive more than $350 million in licensing, marketing and advertising fees from Sun, AOL said.

A media conference call will be held today at 12:00 PM EST, with Steve Case, chairman and chief executive officer (CEO) of AOL; Bob Pittman, president and chief operating officer (COO) of AOL; Jim Barksdale, president and CEO of Netscape; Scott McNealy, president, CEO and chairman of Sun and Ed Zander, COO of Sun.

Rebecca Sykes is a Correspondent at Large for the IDG News Service in Boston.

Related stories:
Latest Headlines

Today on CNN

Related IDG.net stories:

Note: Pages will open in a new browser window Related sites:

External sites are not
endorsed by CNN Interactive.

SEARCH CNN.com
Enter keyword(s)   go    help

  
 

Back to the top
© 2000 Cable News Network. All Rights Reserved.
Terms under which this service is provided to you.
Read our privacy guidelines.