Microsoft makes bid to trounce Netscape deal

Microsoft is attempting to use its muscle in the market by persuading Internet giant America Online to abandon talks with Netscape and license its software instead.

But the tiff took on a tit-for-tat nature as Netscape attempted to ally with Compuserve.

According to The Wall Street Journal, Microsoft has its eyes on the five million America Online subscribers and wants to hammer out a broad-based licensing pact.

But America Online is in continuing discussions with Netscape, which is seeking to forge an alliance which would give end users access to its market-leading Internet browser, Navigator.

News of the negotiations caused shudders on Wall Street as Netscape shares dropped $8 during the week. Financial analysts see Microsoft's aggressive attack on the Internet as weakening Netscape's position in the market.