AOL, Netscape still in spotlight

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Reuters Thursday reported that director of Bertelsmann AG, a major media company and an America Online investor, had confimed reports that Netscape and AOL are currently in alliance negotiations with each other that "may even go as far as a merger." In response to the comment, AOL released a statement saying, "We're not in merger talks with Netscape." Although an AOL spokeswoman did deny merger talks, she didn't comment on whether AOL and Netscape have held talks about alliances. An AOL/Netscape merger could help Netscape increase the market share of its browser, which faces competition from Microsoft who recently announced plans for its own Web browser called the Internet Explorer. Separately, MCI just formed a partnership with Microsoft to market both its Microsoft Network and the Internet Explorer to its more than 9 million customers nationwide.

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