Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Rick McDougall who wrote (14277)	2/10/1999 8:05:00 PM
From: John Carragher	Respond to of 64865

Sun Micro to Pay AOL at Least $1.28 Bln in Netscape Agreement Sun Micro to Pay AOL at Least $1.28 Bln in Netscape Agreement Palo Alto, California, Feb. 10 (Bloomberg) -- Sun Microsystems Inc., one of the biggest makers of computers that run Internet sites, will pay America Online Inc. a minimum of about $1.28 billion over three years as part of their agreement to sell Netscape Communications Corp. software. Sun agreed to help No. 1 online service AOL sell Netscape's Internet software in November, when AOL agreed to acquire Netscape, the dominant maker of browser software, for $4.3 billion. AOL in turn agreed to buy about $500 million of Sun's computers over four years. In a regulatory filing yesterday, Sun disclosed that it guaranteed AOL revenue of $975 million from sales of Netscape products over three years. It also agreed to pay AOL marketing fees of $10 million a year for three years and a total of $278.5 million in licensing fees during the same period. Sun said the agreement will make it a bigger player in the market for computers and software that run the Internet and other, smaller computer networks. America Online and Sun together have products that span from the individual user looking at the World Wide Web on a personal computer to corporations setting up Web sites. AOL, for its part, agreed to pay Sun $5 million a quarter for licenses on Sun products that are part of the agreement, plus $1 million a month for technical support of some products. In the filing with the U.S. Securities and Exchange Commission, Palo Alto, California-based Sun said it will work with AOL to expand sales in the corporate computer market and speed the adoption of electronic commerce among companies. Sun and AOL also plan to develop a new Web browser. Netscape makes two browsers, called Navigator and Communicator. Sun shares fell 3/16 to 97 7/16. Shares of Dulles, Virginia- based AOL rose 2 15/16 to 150 7/8.