AOL plans e-commerce drive with Netscape buy
Tom Foremski America Online (AOL) will acquire Internet software
pioneer Netscape Communications, and will launch a major e-commerce
initiative with Sun Microsystems. The $4.2bn stock swap deal for
Netscape gives AOL a major Internet presence. With Netscape
Netcenter added to its own Internet site, AOL will have two leading
sites. This will bolster its position in attracting Internet-based
advertising and e-commerce. "Netscape's highly regarded suite of
e-commerce software, coupled with our strategic alliance with Sun,
will help us drive e-commerce to a whole new level," said AOL CEO,
Steve Case. AOL also acquires Netscape's software business
including its Web browsers. To build the corporate business, AOL
will purchase $500m worth of Sun systems and software, and launch a
programme to develop Netscape's e-commerce software. AOL and Sun
plan to make Java-enabled consumer Internet access devices. The
alliance with AOL has huge business potential for Sun. It also
represents a welcome boost for Sun's Java technology which is
currently the subject of much discussion over the company's tight
control over the Java standards process. AOL has committed to use
Java and the Java-based Jini technology in future e-commerce
products, as well as PersonalJava for use in Internet access
devices.