SRO: AOL and Netscape: One Year Later

“Nearly one year after announcing it would acquire Netscape
Communications, AOL execs are still sweating blood trying to
integrate the Internet trailblazer into its fold. And resellers are
anxiously waiting to see if new management can still deliver the
software goods.”

“With Netscape attrition rates topping 50 percent (according to
sources who have left the company), products and services marooned
amid organizational changes and management shifts, and a bigger
cultural chasm than executives at AOL or Netscape ever anticipated,
digesting the Internet pioneer into AOL’s portfolio is leaving Case
and Co. searching for answers.”

Still, there are problems on the Netscape front. The
integration process has been so rocky thus far, some AOL execs are
privately second-guessing the $10 billion purchase, two former
high-ranking sources at the company told Sm@rt Reseller.


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