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THE NEW ONLINE WORLD

February 11, 1999 
merger How will the merger of two of the largest Internet companies change the face of the Web? Two industry experts who differ on the agreement answer your questions.

Questions asked in this forum

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What changes will the average computer users see?

Will these mergers help or hinder competition?

Will AOL be the death of Netscape?

Why does AOL still distribute the Microsoft broswer with its software?

Will this merger offer competition for Microsoft?

 

 

Outside Links


Netscape

America Online

Sun Microsystems

 

 

Two of the Internet's most powerful companies have announced they plan to merge.

AOL campusAmerica Online, which provides access to the Internet to more than 14 million subscribers, will buy software-maker Netscape Communications for $4.2 billion. As part of the agreement, AOL will now control the Netscape Web site that currently attracts 20 million visitors each month.

Steve CaseAccording to Steve Case, chief executive officer of America Online, "The acquisition of Netscape is a big step forward for America Online that will greatly accelerate our business momentum. Netscape has played a key role in helping consumers benefit from the enormous power of the Internet, and we share the same mission."

AOL also announced a separate agreement with Sun Microsystems, creator of the Java programming language and many Internet servers. As a part of the accord, Sun will distribute Netscape's software to run its servers and AOL will utilize Sun's Java technology in its Web browser.

The deal has already evoked criticism from consumer advocates who argue the market for Internet software is already too concentrated and this merger will stifle any further innovation.

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