With Netscape Stockholders’ OK, AOL Completes $9.6-Billion Buy
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WASHINGTON — America Online Inc. and Netscape Communications Corp. are one. Following an overwhelming vote in favor of the merger Wednesday by Netscape shareholders Wednesday, company officials signed the papers that make the union official.
Based on Wednesday’s stock prices, Dulles, Va.-based AOL paid $9.6 billion for the Mountain View, Calif.-based company.
Architects of the deal hope that the combination will create an Internet powerhouse of unequaled size and influence.
The final steps of making the merger happen went smoothly. The shareholders’ meeting convened at 8 a.m. Pacific time and lasted just five minutes. Jim Barksdale, Netscape’s chief executive, gave a brief speech.
An AOL source said Barksdale made no substantive remarks, but just introduced the business at hand.
Industry analysts expect AOL to announce next week the specifics of the combined company’s strategy and the roles top Netscape employees will play at AOL. It has already said that Barksdale will join AOL’s board and Netscape co-founder Marc Andreessen will become AOL’s chief technology officer.
Henry Blodget, an analyst with Merrill Lynch & Co., said he expects AOL to talk more about its strategy for high-capacity online access, perhaps announcing a cable TV partner that would help AOL deliver service faster.
AOL might also reveal details about how it will integrate Netscape’s Netcenter Web site with AOL.com and how it plans to make money with its popular but not yet profitable instant messaging service, Blodget said.
