Netscape, Yahoo drop guide

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Netscape Communications Corp. said it and Yahoo! mutually agreed to drop the Netscape Guide by Yahoo! effective July 1.

"Neither company was getting what they wanted out of the service, and as Netscape moved forward with its plans to become a major Internet portal, the relationship for Guide no longer made sense," a Netscape spokeswoman said.

The guide to Web services launched on Netscape's site a year ago, with Yahoo! paying Netscape $5 million for the prominent placement. The spokeswoman said Yahoo! will continue to be involved with Netscape as a "distinguished provider" on Netscape's revamped search site, where Netscape is launching its own branded search service in conjunction with Excite. Yahoo! initially drew prominence in 1995 with its placement on Netscape's site.

Copyright May 1998, Crain Communications Inc.

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