Ibexx & all, "Oracle exec denies Netscape purchase rumor."
Posted at 9:23 p.m. PST Monday, February 9, 1998
sjmercury.com
Oracle Corp. is not interested in buying Netscape
Communications, Oracle President Ray Lane said
yesterday.
''We're not actively considering it,'' said Lane, who
was in Pittsburgh to speak to gatherings of
programmers and corporate chief information
officers. Oracle has been mentioned often as a
potential Netscape suitor.
Rumors about Netscape surfaced last week when The
Wall Street Journal reported the company was
considering selling all or parts of itself. Netscape has
been fighting a difficult battle with industry giant
Microsoft in the market for software used to browse
the World Wide Web.
Oracle, which shares Netscape's Silicon Valley roots
as well as its intense rivalry with Microsoft, is the
largest maker of corporate-database software. It is
also aiming to broaden its reach through its Network
Computer division.
But Lane downplayed the value of acquisitions
generally and Netscape specifically.
''We don't proactively look for acquisitions,'' he said.
''Making acquisitions is not necessarily the path to
success.''
And Lane said Netscape is not especially attractive.
''I'm not sure that the technology and revenue are
worth the price,'' which he estimated at $2 billion to
$2.5 billion.
Netscape is not earning any revenue from its browser
software, which it now gives away free. Since Oracle's
server technology is better than Netscape's, Lane
said, Oracle would essentially be paying for
Netscape's brand name.
''A $2.5 billion brand play?'' he said. ''Maybe for
Coke or Pepsi. But that's a little expensive for us.'' |
