“Microsoft Corp. has purchased $135-million (U.S.) in shares of
struggling Corel Corp., as the two software companies announced a
strategic alliance aimed at developing projects for the U.S.
giant’s Internet platform.”
“In the announcement, which came after the close of trading
Monday, the firms said Microsoft has purchased 24 million
non-voting convertible Corel shares for $135-million, or $5.625 a
share. The deal means Microsoft will have a 24.6-per-cent
non-voting interest in Corel, giving them a financial stake in the
company only. Microsoft will neither have say in Corel’s management
nor will it be involved with the company’s board of
directors….”
“The [Microsoft] Internet platform will be launched in the
second half of 2001, and Corel plans to have its applications on
the platform by the end of 2001. These could include a new version
of WordPerfect or CorelDRAW, for example.”