'The Microsoft acquisition of Hotmail is another great validation that Web-based email is here to stay,' said Scott Chasin, USA.Net's chief technology officer. Hotmail competitor, said it has little concern about Microsoft moving into its market because USA.Net offers different features than Hotmail. It also isĪbout to acquire CompuServe, which earlier this week launched a Web-only service, dubbed 'C.' AOL recently announced that it will offer its 10 million membersĪccess to their email without logging on to the ISP's network. MSN.com's main rival, online giant America Online. The potential for so many new eyeballs on the site poses a major threat to In turn, will generate more advertising revenue. That Hotmail will generate more traffic at those popular sites, and that the traffic,

Members to these various sites, where they can log on to retrieve and sendĮmail-and hopefully do some shopping while they're there. The move will create a red carpet ushering in Hotmail's 9 million To drive traffic to its revenue-generating sites, such as Expedia andĬarPoint, and then keep surfers within the Microsoft circle. and Hotmail is head and shoulders above the othersĭuring the next few months, Hotmail will be integrated into sites on the 'We were missing a search engineĪnd free email on MSN until last summer. 'This completes our lineup,' said Laura Jennings, Microsoft and Hotmail officials would not comment on the price. The stock deal for the two-year-old company has been estimated in the hundreds of million of dollars, according to industry sources. Had been in talks to invest in Hotmail, and sources predicted that a deal The Microsoft Network, turning up the heat on America Online (AOL). Microsoft (MSFT) said Wednesday it is buying Hotmail to make free email a feature of

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