To: Moonray who wrote (32230 ) 7/1/1999 1:51:00 PM From: Mang Cheng Read Replies (2) | Respond to of 45548
"3Com Plans Portal Partnership For Palms " July 1, 1999 Inter@ctive Week : A deal would extend the reach of the handheld devices By Todd Spangler Seeking to extend the reach of its Palm devices and wireless services, 3Com may pair up with a major Internet portal site, according to Janice Roberts, 3Com's senior vice president of marketing and business development. "I think it makes sense to align ourselves with a portal," Roberts said last week. Roberts declined to discuss which portal sites 3Com (www.3com.com) might be talking to about a partnership. 3Com already has a "wireless portal" of sorts itself, with its recently launched Palm.net wireless service (www.palm.net), which aggregates Web content for Palm VII device users. Delivering content to handheld and other non-PC devices has become a new focus for the major portal sites. Yahoo! (www.yahoo.com) recently bought OnlineAnywhere, which develops software that reformats Web pages for non-PC devices; and Microsoft this month launched MSN Mobile (mobile.msn.com), which lets registered MSN users receive wireless information on in-teractive pagers and cell phones. 3Com is also considering financially reorganizing the Palm business, which is the fast-est growing of its product lines. In a conference call with analysts last week, Chief Executive Eric Benhamou said he expects revenue from Palm to become 25 percent of 3Com's overall evenue within a year, up from 10 percent now. When asked whether 3Com would consider spinning off the Palm division, Roberts said: "It's fair to say we'll structure our Palm business to be more visible." 3Com "will consider various financial instruments" in order to accomplish that aim, Roberts said. She cited, as one example, ompanies that have issued tracking stocks for their Internet-related lines of business that are considered undervalued. If 3Com strikes a deal with a portal, it will augment other Palm-related partnerships and investments the company recently has made. Last week, 3Com and America Online (www.aol.com) said they will deliver software that will allow AOL's 17 million users to send and receive e-mail from any Palm device, using either an analog modem or wireless connection. 3Com also this month formed a new company, OpenSky, in partnership with wireless systems integrator Aether Technologies (www.aethertech.com). The company will deliver wireless e-mail and Internet access services for business and consumer users. Terms of that deal weren't disclosed, although in December 1998 3Com said it had invested $6 million in Aether Technologies. <<Inter@ctive Week -- 06-28-99>>