Oracle buys share in NCI rival to Web TV

Oracle reported to be paying $60 million for stake in company which will develop consumer products with browser technology

Oracle has acquired a majority stake in an operation created out of the merger of its own thin-client subsidiary, NCI, with Netscape-owned startup Navio.

As predicted in PC Dealer (21 March), the merged operation of NCI and Navio, which will develop Netscape?s navigator technology for consumer devices, is an attempt to steal a march on Microsoft?s Web TV initiative and handheld CE initiative under one marketing attack.

The company will operate under the NCI name. Neither Oracle CEO Larry Ellison or Netscape CEO Jim Barksdale were prepared to disclose the terms of the agreement. But according to US reports, Oracle is expected to pay out at least $60 million for the stake, which will be included in R&D costs over the next two quarters.

NCI will develop and market a range of consumer products with browser technology built in. These will include handhelds, set-top boxes and games consoles. NCI?s television/Web surfer product, brand-named TV Navigator, will ship before Christmas, according to Netscape UK managing director Steve Voller.

Voller denied that Netscape?s browser brand would be swallowed up by Oracle. ?Larry Ellison is the father of the network computer. This deal moves network computing for the consumer from an ideal to a real concept. This technology will give people immediate access to the Web and to TV in one device,? he said.

NCI will be headed up by Wei Yen, former CEO of Navio, who will become president. The Oracle unit of the company, which will contribute technology to the business arm of Oracle?s thin-client strategy, will be headed by NCI?s existing CEO Jerry Baker.

All former Navio staff will be retained by NCI.

NCI was unavailable for comment as PC Dealer went to press.