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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: im a survivor who wrote (28797)	8/6/1999 5:26:00 PM
From: slurper	Respond to of 41369

AOL outsmarts MSN.... Check this article!!!! EarthLink, MindSpring to Offer AOL Instant Messaging Dulles, Virginia, Aug. 6 (Bloomberg) -- EarthLink Network Inc. and MindSpring Enterprises Inc. said they've agreed to use instant messenger software from rival Internet service provider America Online Inc., the latest round in AOL's dispute with Microsoft Corp. over access to online subscribers. Terms of the agreements weren't disclosed. Instant messaging lets people know when friends are online and sends them immediate messages. It's become one of the most popular ways to communicate over the Internet. America Online, the largest Internet service, alleges that Microsoft's version of instant messaging software illegally gains access to AOL's computer systems. By inducing EarthLink and MindSpring to use an AOL-approved version of its program, AOL is seeking to strengthen its argument that the world's largest software maker shouldn't be tapping into its systems without approval. ''It's a great chess move. (AOL) turned around and went to the two most successful ISPs and cut a deal,'' said Youssef Squali, an analyst at Ladenburg Thalmann & Co., who rates AOL a ''strong buy.'' AOL rose 3/4 to 84 11/16 in trading of 24.4 million shares, while Microsoft fell 5/8 to 85 1/8 as 33.6 million shares changed hands. The companies were the two most actively traded in U.S. markets. EarthLink, the No. 4 U.S. Internet service, jumped 4 1/2 to 41 9/16 and MindSpring, No. 5, gained 2 13/16 to 28 13/16. Industry Standards ''These sorts of partnerships show that AOL is not just an island unto itself, that it's not unwilling to share its bounty,'' said Lucas Graves, an analyst at Jupiter Communications Inc., a New York-based market research firm. Microsoft is supporting industry standards that would allow free access to instant e-mail users. AOL has blocked access to Microsoft's attempt to link its MSN Messenger service to AOL. EarthLink's more than 1.3 million subscribers and Atlanta- based MindSpring's 1.2 million members will now be able to send instant electronic mail to the roughly 43 million registered users of AOL's instant messenger service. ''AOL has become pretty much the standard, (giving) them more than 50 percent of the total dial-up access market,'' said Ladenburg's Squali. Dulles, Virginia-based AOL offers instant messaging to the more than 17 million subscribers to its flagship service and to 2 million CompuServe users. It also lets people download the software for free from its Web site, aol.com. Last month AOL said it would work with Apple Computer Inc. to tailor its instant message program to work on Apple's Macintosh personal computers. Subscriber Information Microsoft is planning to meet in September with Prodigy Communications Corp., the No. 6 Internet service, and other Internet companies that are battling AOL for access to its instant messaging program. Prodigy declined to comment. The battle between Microsoft and AOL began last month when Microsoft released its MSN Messenger instant e-mail service, which sniffs out whether a computer has AOL's instant message service on it, then asks the user to give his AOL user name and password. AOL advises subscribers not to give out their passwords to keep user information safe, such as billing data. AOL informs people using Microsoft's software trying to access AOL's systems that the program is unauthorized and suggests they sign up for AOL's service. Online Access Still, Microsoft may eventually be forced to work with AOL since AOL continues to block Microsoft's instant message service from its dominant online service, some analysts said. ''Microsoft is either going to come to the negotiating table and negotiate agreeable terms'' or have to include instant messaging as part a more aggressive offering of Internet access, said Squali. America Online shares dropped 4 percent yesterday on concern that Microsoft may introduce a lower-cost or free Internet service in the U.S., which could crimp AOL's subscriber growth. EarthLink is based in Pasadena, California. Aug/06/1999 16:15 For more stories from Bloomberg News, click here. (C) Copyright 1999 Bloomberg L.P. Any redistribution of Bloomberg content, including by framing or similar means, is expressly prohibited without the prior written consent of Bloomberg L.P. Any reference to the material must be properly attributed to Bloomberg News. The information herein was obtained from sources which Bloomberg L.P. and its suppliers believe reliable, but they do not guarantee its accuracy. Neither the information, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any securities or commodities.(C) Copyright 1999 Bloomberg L.P. BLOOMBERG, Bloomberg News, Bloomberg Financial Markets, Bloomberg Television, Bloomberg News Radio are trademarks, tradenames and service marks of Bloomberg L.P.