| Microsoft and AOL have made a deal that should send AOL stock
plummeting. Judges had already found Microsoft guilty of antitrust
violations which damaged AOL's business with the Netscape Internet
browser. AOL paid $10 billion for Netscape, but AOL Timer Warner head
Richard Parsons settled for $750 million plus the right to use Microsoft's
Internet Explorer Browser free for seven years.
This is a brilliantly successful deal for Microsoft, since their
potential exposure in the lawsuit could have been billions. The good news
is that people who IM will have their universe expanded, with planned
cooperation between Microsoft and AOL instant messaging programs.
More on the settlement:
Microsoft,
AOL Plan Alliance Software giant to pay ISP $750M to settle
antitrust suit in a deal that turns one-time rivals into powerful
partners. Washington Post 5/30
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