The sometimes rocky relationship between Microsoft
Corp. and RealNetworks Inc. surfaced again late Wednesday when the software
giant announced it would begin selling its minority stake in the streaming
media company.
Microsoft said it first notified real in June that it was considering
selling the 3.3 million shares it bought in July 1997 for $9 each. The
software giant said it felt accelerating the development of its own Windows
Media Player, which competes with Real’s product, was in its best interest.
“Microsoft and RealNetworks are each developing exciting technologies, but
the rapid pace of innovation and our competing visions for streaming media
means our investment in RealNetworks no longer makes sense,” said Greg
Maffei, Microsoft’s chief financial officer.
Real estimates Microsoft has made about $100 million on its investment.
The moves comes after relations between the two companies soured over the
summer after Real Chairman Rob Glaser accused the software giant of
intentionally disabling its products. Glaser maintained the Real’s
streaming media player no longer worked once Microsoft’s own player was
installed. Microsoft disputed the claim all along and blamed the problems
on a defect in a beta version of the RealPlayer.
