INTERNET RIVALS TO BURY HATCHET WITH MERGER.Byline: Evan Pondel Staff Writer WESTLAKE VILLAGE - NetZero Inc. and Juno Online Services Juno client software icon Juno is an Internet service provider based in the United States. It is a subsidiary of United Online, which also owns NetZero and Bluelight Internet Services. Inc.'s agreement to merge in a $70.7 million deal culminates an often volatile relationship fraught with dueling lawsuits. The move announced Thursday unites two Internet-service providers that have grappled with providing free Web access while turning a profit. Though some of the lawsuits both companies filed against each other for patent infringement patent infringement n. the manufacture and/or use of an invention or improvement for which someone else owns a patent issued by the government, without obtaining permission of the owner of the patent by contract, license or waiver. are still pending, their newly formed union will most likely nullify nul·li·fy tr.v. nul·li·fied, nul·li·fy·ing, nul·li·fies 1. To make null; invalidate. 2. To counteract the force or effectiveness of. those differences. ``Lawsuits are still in place, but when we're one company, it's not like we're going to sue ourselves,'' said Peter Delgrosso, a spokesman for NetZero. ``We were strong competitors, fighting for the same audiences, and we have put those differences aside.'' The two companies, which will become wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. under the name United Online Inc., will have 7 million active subscribers, but only 1 million will be paying subscribers. Charles E. Ardai, chief executive of Juno, who will leave the company after the merger closes in the next five to six months, said it was time the companies cease their fisticuffs in order to pool their strengths and take on some of the larger ISPs. ``There's kind of a hole in the market next to AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. and there has always been a need for this Pepsi to a Coke or a Burger King to this McDonald's,'' he said in a conference call Friday morning. ``We think that United Online has every opportunity to be that to America Online See AOL. .'' As Westlake-based NetZero and Juno combine their assets to bolster profits, both companies have some room to make up. NetZero had a net loss of $91.4 million in the third quarter ending March 31, compared with a net loss of $24.9 million for the same period a year ago. New York-based Juno posted a net loss of $9.6 million in the first quarter, compared with $47.6 million a year ago. |
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