AOL exec: Netscape browser died before AOL sale

Barry Schuler, president of America Online's (AOL) interactive services,told lawyers during his deposition for the Microsoft antitrust case thatNetscape's browser was "decimated" before AOL decided to buy Netscape andthat the sale went through so that AOL could take advantage of Netscape'sWeb site business. Schuler says that Netscape's only viable business was asa Web portal.

"I was relatively lukewarm about the idea [of AOL buying Netscape]," saidSchuler. "I felt the browser part of their business was dead."

Regardless, the online giant eventually shelled out over $9 billion for thefaltering start-up that had once dominated the browser market. Microsoft hasbeen trying to prove that executives from AOL and Netscape knew of the dealbefore testifying against Microsoft at the trial and that they deliberatelyput off the deal so that their testimonies as Microsoft victims would carrymore weight. Analysts believe that the combined Netscape/AOL provesMicrosoft's assertion that competition is alive and well in the computerindustry