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CNN Live At Daybreak

Tech Titan Truce

Aired May 30, 2003 - 06:17   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: It's time to get some business buzz right now. AOL Time Warner and Microsoft have buried the hatchet.
Susan Lisovicz is live in New York with details of this titan truce, and it's nice to be able to say, we're sorry, and then give the other party $750 million.

SUSAN LISOVICZ, CNN FINANCIAL NEWS: And pay out.

COSTELLO: Yes.

LISOVICZ: That's right, Carol. Well, we don't have peace in the Middle East, but we do have detante (ph) between two of the world's most bitter business rivals.

Microsoft will pay AOL Time Warner $750 million to settle an antitrust lawsuit filed on behalf of Netscape, which is an AOL subsidiary. AOL Time Warner, of course, the parent of this network.

The rivalry revolved around AOL's accusations that Microsoft uses its monopoly power to stifle the Netscape browser, which is a competing on ramp to the Internet. As part of the settlement, Microsoft will license its Explorer browser to AOL for seven years without charging royalties. In return, AOL has agreed to explore ways to make its popular instance messaging system work with Microsoft's network and will install Microsoft's media player, and they all lives happily ever after.

COSTELLO: That's a beautiful story, Susan. A question for you, though. Has AOL said exactly what it will do with that settlement money?

LISOVICZ: Oh, yes. Chairman and CEO Dick Parsons says AOL will use the money to pay down part of its debt. When I say part of its debt, $750 million is a lot of money, but AOL has $26 billion in debt. For Microsoft, not a big deal, it has more than $46 billion in cash flow, so it's a different situation for Microsoft

COSTELLO: Much different. Susan, thanks. You'll look at the futures in the next half-hour.

LISOVICZ: I will.

COSTELLO: Many thanks.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.






Aired May 30, 2003 - 06:17   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: It's time to get some business buzz right now. AOL Time Warner and Microsoft have buried the hatchet.
Susan Lisovicz is live in New York with details of this titan truce, and it's nice to be able to say, we're sorry, and then give the other party $750 million.

SUSAN LISOVICZ, CNN FINANCIAL NEWS: And pay out.

COSTELLO: Yes.

LISOVICZ: That's right, Carol. Well, we don't have peace in the Middle East, but we do have detante (ph) between two of the world's most bitter business rivals.

Microsoft will pay AOL Time Warner $750 million to settle an antitrust lawsuit filed on behalf of Netscape, which is an AOL subsidiary. AOL Time Warner, of course, the parent of this network.

The rivalry revolved around AOL's accusations that Microsoft uses its monopoly power to stifle the Netscape browser, which is a competing on ramp to the Internet. As part of the settlement, Microsoft will license its Explorer browser to AOL for seven years without charging royalties. In return, AOL has agreed to explore ways to make its popular instance messaging system work with Microsoft's network and will install Microsoft's media player, and they all lives happily ever after.

COSTELLO: That's a beautiful story, Susan. A question for you, though. Has AOL said exactly what it will do with that settlement money?

LISOVICZ: Oh, yes. Chairman and CEO Dick Parsons says AOL will use the money to pay down part of its debt. When I say part of its debt, $750 million is a lot of money, but AOL has $26 billion in debt. For Microsoft, not a big deal, it has more than $46 billion in cash flow, so it's a different situation for Microsoft

COSTELLO: Much different. Susan, thanks. You'll look at the futures in the next half-hour.

LISOVICZ: I will.

COSTELLO: Many thanks.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.