Qualcomm Invests $144 Million in NetZero

Wireless communications giant Qualcomm
Monday took a 10 percent stake in free Net access provider NetZero Inc. worth $144 million.

QUALCOMM bought approximately 11.5 million shares at about $12.50 per

As part of the deal, NetZero (NZRO)
will distribute Qualcomm’s (QCOM)
Eudora e-mail management software as the preferred e-mail program for
NetZero’s users.

Qualcomm released Eudora 4.3 last February, making the e-mail program
available to users free of charge when they use the product in sponsored
mode, which displays advertising in a small window in the user interface. In
the co-branding agreement, Eudora will be included on NetZero CDs and will
be part of the standard install program for NetZero’s client access

NetZero Chairman and Chief Executive Officer Mark R. Goldston said the investment goes along with his company’s plan to
provide free Net access across a variety of platforms, including narrowband
dial-up, high-speed wireless, broadband and cellular.

Goldston added that NetZero’s goal is to provide its subscribers access to
the Internet, allowing them to navigate and receive
e-mail across a variety of devices, including laptop and desktop computers,
Internet appliances, mobile phones and Personal Digital Assistants.

Both firms have found reasons to defend their territories in recent months.
In February, NetZero accused rival @Home Corp. (ATHM)
of aping its “Defenders of the Free World” trademark. In a suit, NetZero
said @Home wrongly began advertising “Free World Powered by Excite.”

Qualcomm also embarked on a lawsuit. In March, the firm ended a three-year
legal battle with Motorola Inc. (MOT)
that featured seven separate federal court cases alleging claims and
counterclaims for patent infringement, breach of the parties’ license
agreements, misappropriation of trade secrets and unfair competition.

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