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To: Elwood P. Dowd who wrote (33148)9/19/1998 6:11:00 PM
From: Elwood P. Dowd  Respond to of 97611
 
Don't think this version has yet been posted. El
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****Compaq Reportedly Negotiating Deals For AltaVista

Newsbytes - September 18, 1998 11:22

HOUSTON, TEXAS, U.S.A., 1998 SEP 18 (NB) -- By Bob Woods, Newsbytes. Compaq Computer
Corp. [NASDAQ:CPQ] is reportedly talking about linking its AltaVista World Wide Web search engine
with Yahoo Inc. [NASDAQ:YHOO] and Time Warner Inc. [NYSE:TWX] in a possible joint venture,
according to a press report. But a move made by Yahoo earlier this year may put the story in a slightly
different light.

Business Week, in its "Up Front" column, reported that Compaq would possibly trade equity in the Web
search engine for Internet content from Yahoo or broadband services from Time Warner -- services that
Compaq could offer to its customers. Compaq's board may be asked to okay a partner as soon as next
month, Business Week quoted unidentified sources as saying.

While all three companies declined comment to Business Week, the magazine quoted the PC maker's
chief financial officer Earl Mason as saying the company is negotiating with a few different partners
concerning AltaVista.

Newsbytes notes, however, that Yahoo changed the status of AltaVista within its leading Web search
portal site earlier this year to "an alternate" search engine from Yahoo's default search engine
(Newsbytes, May 18, 1998). The move came because, among other reasons, AltaVista now competes
directly with Yahoo for advertising and e-commerce dollars, as well as the scattered attention of Net
surfers, Yahoo officials told Newsbytes at the time. AltaVista had been Yahoo's primary provider for the
past two years.

A Digital Equipment Corp. spokesperson -- DEC was bought out by Compaq after the May Yahoo deal
-- essentially agreed with Yahoo's "competition" assessment: AltaVista one year ago developed an
advertising and marketing plan that brought it directly into competition with Yahoo. "The relationship
between us and Yahoo became awkward" at that point, the DEC spokesperson said.

The DEC official was quick to point out that the relationship between his company and Yahoo never
soured, even as both companies moved to a head-to-head race for ad and e-commerce dollars.

Inktomi Corp.'s Web searching technology replaced AltaVista as the primary search engine. Yahoo's
deal with Inktomi called for the search engine company's technology to accompany and be integrated
into Yahoo's directory listings throughout Yahoo's various sites.



To: Elwood P. Dowd who wrote (33148)9/19/1998 6:24:00 PM
From: Elwood P. Dowd  Read Replies (2) | Respond to of 97611
 
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