Compaq Computer Corp. has created a wholly owned subsidiary for its AltaVista Internet search site and plans to take the subsidiary public.
AltaVista, which Compaq acquired when it purchased Digital Equipment Corp. last year for $9.6 billion, will become the cornerstone of The AltaVista Company, according to a statement from Compaq. Having a separate subsidiary for AltaVista will help Compaq focus on making the search and navigation site a key destination for Internet information and electronic commerce, it said.
The AltaVista Company will be based in Palo Alto, California, the company said. Rod Schrock will serve as president and chief executive officer of the new company, according to Compaq. Schrock was most recently senior vice president of Compaq's Consumer Product Group.
Compaq also announced a technology-sharing agreement with Microsoft Corp. Compaq will make an AltaVista-branded version of Microsoft's Hotmail service available to AltaVista users, and AltaVista will be the primary search engine for the Microsoft Network, according to Compaq. The companies will also team on other Web-based communications and community-building services, Compaq said.
RELATED LINKS
Network World, 7/13/98
Compaq snaps up Digital
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