Intuit acquires 20% of Excite

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Intuit Corp. made a $40 million investment in Excite, the two companies announced Wednesday. The investment, which amounts to 20% of Excite, means the company will drop plans for a secondary public offering. America Online also owns 20% of Excite.

Intuit and Excite have also signed a seven-year agreement to collaborate on a co-branded financial channel on the Web. The channel will include financial information from both companies as well as industry news, directories and capabilities for online commerce and transactions. The new channel will be distributed throughout Excite, WebCrawler, Magellan and the Intuit Financial Network. Excite and its staff of 40 sales people will sell advertising for the channel; revenues will be split among the two companies.

In related news, Intuit on Tuesday laid off about 270 people (10% of its work force), primarily in its technical support facilities. "We've found that we need less support as we move online, where the burden is a lot lower than in traditional software support," said Scott Cook, Intuit's president, in a telephone conference.

Copyright June 1997, Crain Communications Inc.

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