MozillaZine

AOL To Buy Netscape?

Sunday November 22nd, 1998

From Ben Marklein comes this interesting news -- apparently AOL is considering a buyout of Netscape in a stock swap. For the news, check out News.com and Techweb. Sun may be taking over Netscape's business application division.

UPDATE: Another more in-depth article is available at washingtonpost.com.

Here's another article - this one from the New York Times website. To view it, you must be be a registered user (it's free, though, so check it out).

UPDATE: An article at News.com confirms the rumors, but no deal has been reached at this time.


#23 Re:AOL To Buy Netscape?

by Alex Chudnovsky <b9678050@wlv.ac.uk>

Monday November 23rd, 1998 1:51 PM

You are replying to this message

For those of you who thinks AOL _pays_ 4 bln for Netscape, open your eyes, and re-read article: <http://www.techweb.com/wi…ce/story/INV19981122S0002>

It's a STOCK SWAP! _Valued_ at 4 bln at this very point of time, VERY likely, once they tried to sell it, such amount of shares on market would dump it down and they may get 1 bln, or less. This is EQUITY != MONEY

Well, I am finance student, so it's close for me to look at. Actually I always was sure Netscape will be bought back by Sun, Oracle or IBM. AOL comes to surpsise only if we forget their user base. 14 mln of new NN copies and -14 for MSIE would change market share considerably, and Netscape (a division of AOL now?) will have a lead. wow! AOL will be number 1 borwser developer on the Net.

Buyback appears to be only way for Netscape, but going with AOL may serve not well, except those EXECs who own lots of Netscape shares and gladly prefer to swap them for much more preferably AOLers...

From what I know AOL is highley proprietary service and extremely limiting to it's user, perhaps it's ideal for 'newbie' but their constant attempts to hold it proprietary and BADLY done(coded) sounds for me worse then MS.

But of course not for those who swap NSCP high positioned owners/founders who can not easily sell their (junk?) stocks (once they file their request sell it and market will spot it, the price of NSCP will go THAT DOWN, so they barely make any good money, well.

from Finance point of view, if I were them I would do same, swapping some paper for some other paper which still can be sold more or les s easily, sounds as good deal!

-Alex