America Online Mum On Mirabilis Talk
DULLES, Va. (Reuters) - America Online declined comment
Thursday on reports it was in talks to buy Mirabilis and its hot ICQ
online communications software for an estimated $300 million.
"We don't comment on market speculation," said Michael Gross, a
spokesman for America Online, the world's largest Internet online
service provider.
America Online's AOL service has 12 million subscribers. The
Dulles, Va.-based company has been seeking to leverage that
dominant position by expanding its brand offerings.
Last year, America Online acquired CompuServe and in May
bought NetChannel Inc., which will accelerate AOL's development
of interactive television for its subscribers, Gross said.
For its part, Israel's Mirabilis also declined comment on the merger
reports and takeover speculation that has been swirling around the
start-up company in recent months. Market sources said Mirabilis
is rumored to have turned down an earlier offer from Microsoft.
Mirabilis' ICQ has created a virtual community of 11 million
subscribers who use the software to connect with each other and
play games, surf the 'Net or chat online.
The ICQ software is considered more sophisticated than an
existing AOL service, AOL's buddy network. Using that feature,
AOL subscribers are notified when their designated "buddies" are
signed on, and can chat with them online.
More than 30 million AOL users have designated online buddies,
and AOL has been expanding the service beyond its subscriber
base, Gross said.
The Wall Street Journal on Thursday quoted executives familiar
with the negotiations between Mirabilis and AOL as saying a deal
would be completed in the next two weeks. |
