Microsoft to buy e-mail start-up in stock deal
Article Abstract:
Microsoft said it would acquire electronic-mail provider Hotmail, the Internet's leading free e-mail service, in a stock transaction. Neither company disclosed financial details, but analysts estimate the deal's value to be between $300 million and $400 million. Hotmail, with 9.5 million subscribers, ranks as the 14th most-visited Internet site, according to a Nov 1997 poll conducted by research company RelevantKnowledge. The move illustrates Microsoft's aggressive strategy of developing its Internet business. Microsoft Network (MSN) has drawn fewer than three million customers since its 1995 inception. Microsoft's new acquisition will not only narrow MSN's competition with leading on-line service provider America Online, but will enable it to extend its plans of creating a preferred 'portal' to the Internet. The software giant hopes to attract customers with free services, then sell services or charge fees for transactions.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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Microsoft to give Lernout $45 million for development of speech technologies
Article Abstract:
Microsoft and Lernout & Hauspie Speech Products (L&H), a Belgian speech recognition technology developer, reached a strategic alliance on advanced computerized-speech technologies. Terms call for Microsoft to acquire an approximately 8% stake in L&H in return for a $45 million investment. Another condition involves development of a European joint venture that will collaborate in studying linguistic data but the companies to process the information separately. L&H, a worldwide leader in an emerging market, has developed products in up to 20 different languages. Speech recognition technology is expected become a multibillion-dollar business by the start of the 21st century. The technology eventually could help software receive voice commands. Dozens of other companies have allocated funds and research on speech recognition's commercial development.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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When Bill met Steve: a showdown that shaped AOL
Article Abstract:
In May 1993, an America Online Inc (AOL) meeting was held with executives from Microsoft Corp, including Chmn Bill Gates attending. The meeting was supposed to be 'exploratory,' but Gates' remarks were taken by the AOL group as threatening. Although a Microsoft executive later said Gates was misunderstood, he seemed to AOL to be delivering a buyout ultimatum. Steve Case, AOL's leader, opposed such a deal, and in June, when Microsoft had made its desire to own AOL clearer, Case convinced a majority of AOL's board members to vote against an agreement. Thus, AOL decided to go its own way and not enter into discussions with Microsoft or anyone else. This proved to be a wise decision. During the next five years, AOL's valuation increased from about $402 million to a market capitalization of $20 billion in 1998.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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