AOL Buys Netscape
AOL announces it will buy Netscape Communications in a stock-for-stock deal worth approximately $4.2 billion. At the time it was considered a move by AOL and Netscape to merge forces to better compete with Microsoft in the browser and Internet provider markets. However, Microsoft’s dominance in the personal computer market could not be stopped and the Netscape browser lost almost all marketshare to Internet Explorer. In 2003 Microsoft settled a monopoly lawsuit with AOL (then merged with Time Warner) for $750 million over the loss of value of Netscape. AOL itself, once a dominant Internet Service Provider, slowly lost their subscriber base with the evolution of broadband Internet in the 2000’s and operates primarily as a media conglomerate, although their dial-up service still subscribes approximately 2 million users as of 2013.