Gateway, EarthLink Discuss Acquisition
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Rumors of the talks sent EarthLink shares rocketing Tuesday, giving it a market cap of more than $1.8 billion.
The Wall Street Journal said the companies haven't reached the point of discussing financial terms of a deal. Neither company would comment on the talks.
Gateway recently acquired a stake in an online computer software reseller and launched its own ISP, Gateway.net, in 1997. In May, Gateway invested $200 million for a stake in Internet operating company CMGI.
EarthLink claims 1.2 million customers. Sprint Corp. owns nearly 26.5 percent of the company.