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Microsoft's Antitrust Trial: AOL's Netscape Acquisition Affects Case

Strategic Insights

— 1 min read

The $9.9bn purchase of Netscape Communications Corp. by America Online (AOL) has become a crucial element in Microsoft's antitrust trial, with the company's lawyers seeking insight from executives involved in the deal. Peter Currie, chief financial officer of the Netscape division of AOL, has testified that AOL's fear of Microsoft nearly derailed the acquisition, which was finalized last month. Judge Thomas Penfield Jackson has suggested that the acquisition's details may significantly impact the trial's outcome. Meanwhile, the government has released thousands of pages of past depositions, but lead prosecutor David Boies warned reporters not to expect significant new information.

Key Takeaways:

  • The $9.9bn AOL-Netscape acquisition has become a critical element in Microsoft's antitrust trial, with the company's lawyers seeking insight from executives involved in the deal.
  • Peter Currie, chief financial officer of the Netscape division of AOL, testified that AOL's fear of Microsoft nearly wrecked the whole deal, fearing it would back out if it became weak-kneed or cold feet.
  • Judge Thomas Penfield Jackson has suggested that the acquisition's details may significantly impact the trial's outcome, stating there may be a "very significant change in the playing field."
  • The acquisition's impact on the trial is not a surprise, as Currie had acknowledged that the merger could affect Microsoft's trial and treated it like a separate issue.
  • Three executives involved in the deal will be interviewed by Microsoft: Peter Currie (already interviewed), Mike Popov of Sun (to be interviewed on Friday), and AOL chief executive Steve Case (next week).
  • The government has released thousands of pages of past depositions, but lead prosecutor David Boies warned reporters not to expect too much from the new documents.

Statistics:

  • $9.9bn: The transaction value of the AOL-Netscape acquisition.
  • 3: Number of executives involved in the deal to be interviewed by Microsoft.
  • 1,000s: The number of pages of past depositions released by the government.
  • Mid-May: The expected resumption date of the trial.

Sources:

  • "Microsoft lawyers interview AOL executive" by Rachel Chalmers, Lawyers for Microsoft Corp
  • Reuters, "US trial: Government releases thousands of depositions"

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