AOL reorganizes

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America Online, Dulles, Va., announced a new organizational structure integrating recently acquired Netscape operations. The company will divide into four product groups: the interactive services group, the interactive properties group, the Netscape enterprise group and the AOL international group. Each product group will report to AOL President-Chief Operating Officer Bob Pittman. Both AOL and Netscape executives have been named to management positions within the groups. Netscape-branded operations will remain based in Mountain View, Calif. Integration with Netscape and the new organizational structure will result in the elimination of 700 to 1,000 Netscape and AOL employees. AOL expects a one-time charge in the third quarter as a result of the acquisition and reorganization. Separately, AOL and Sun Microsystems, Palo Alto, named Sun executive Mark Tolliver president-general manager of their strategic e-commerce alliance. At Sun, he was president of the consumer and embedded division. Former Netscape Chief Operating Officer Barry Ariko will serve as exec VP-deputy general manager of the alliance.

Copyright March 1999, Crain Communications Inc.

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