Today on “Days to Remember,” we celebrate how on November 24th 1998, AOL known as (America Online) announced a deal for their purchase of Netscape for $4.21 billion dollars.
As part of the deal, Sun will pay more than $350 million in fees, plus significant minimum revenue commitments during the next three years. In exchange, AOL will buy Sun hardware and services worth $500 million.
Netscape stockholders will receive 0.45 shares of AOL stock for each share of Netscape stock. The deal is expected to close in spring 1999.
Netscape’s operations will remain based in Mountain View, California. Netscape chief executive Jim Barksdale will be offered a seat on AOL’s board but have no management role.
AOL plans to: maintain the Netscape brand name; expand its audience with the Netcenter portal that is integrated with the Netscape browser; and keep Netscape’s development team.
AOL has struck a three-year alliance with Sun Microsystems to distribute and develop Netscape’s enterprise software for corporate customers. The companies will use Sun’s Java technology to offer AOL services on Internet devices.
AOL expects to continue including Internet Explorer in its service, so consumers will still have AOL software included on their desktop.
When did AOL first make its public debut?
AOL originally provided dial up service to millions of Americans. At the height of its success it merged with media conglomerate Time Warner. As dial up rapidly lost ground to broadband in the mid-2000s, AOL’s fortunes significantly retracted and it lost the vast majority of its value by laying off thousands of employees. Time Warner was eventually spun off, and is worth fourteen times that of AOL, as of late 2015.
Who invented AOL?
AOL began in 1983, as a short-lived venture called Control Video Corporation (or CVC), founded by Davin Quinton. Its sole product was an online service called GameLine for the Atari 2600 video game console, after von Meister’s idea of buying music on demand was rejected by Warner Bros. Subscribers bought a modem from the company and paid a one-time setup fee.
Who invented the dial up modem?
The 56K modem was invented by Dr. Brent Townshend in 1996, but in 1962 the first commerical modem was manufactured by two companies Bell and AT&T.
A typical modem speed if you can remember that far back in the late 90’s was a modem speed of 1200, 2400, 4800 and 9600 bps.
When did Netscape make its first public debut?
Netscape was the first company to attempt to capitalize on the nascent World Wide Web.
It was originally founded under the name Mosaic Communications Corporation on April 4, 1994, the brainchild of Jim Clark who had recruited Marc Andreessen as co-founder and Kleiner Perkins Caufield & Byers as investors. The first meeting between Clark and Andreessen was never truly about a software or service like Netscape, but more about a product that was similar to Nintendo as we celebrate how on November 24th 1998, AOL known as (America Online) announced a deal for their purchase of Netscape for $4.21 billion dollars.
Written & Designed by JD Mitchell