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Deal Is Done: AOL Buys Netscape
The $4.2 billion purchase includes a strategic alliance with Sun Microsystems.
Tom Spring, PC World
The much-anticipated deal also launches a strategic alliance between AOL and Sun Microsystems. The pact includes a three-year strategic development and marketing alliance with Sun to enhance its delivery of e-commerce solutions to build revenues across the AOL and Netscape brands.
With the purchase of Netscape, AOL will play a major role in controlling the Web, owning many of the Internet's most coveted properties. The purchase gives AOL Netscape's browser software and Netscape's popular Web gateway, Netcenter.
AOL also becomes a more formidable challenger to Microsoft, competing with it on many fronts--not just the Web.
AOL, Netscape, and Sun have said they will work together to create a host of Java-enabled next-generation Internet devices.
Terms of the deal call for Netscape shareholders to receive 0.45 share of AOL for each share held.
The companies will disclose more details at a press conference scheduled for noon Eastern Standard Time.
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