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Technology Stocks : Netscape -- Giant Killer or Flash in the Pan? -- Ignore unavailable to you. Want to Upgrade?

To: Pei-Hwa Ho who wrote (2405)	2/10/1998 8:55:00 PM
From: Leo Francis	Respond to of 4903

Oracle exec denies Netscape purchase rumor Posted at 9:23 p.m. PST Monday, February 9, 1998 Providence Journal-Bulletin 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." Good Trading, LF