Andreessen Horowitz Part I
Acquired
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Why did AOL buy Netscape for $4.2 billion?
AOL bought Netscape for $4.2 billion of their stock in order to have a bargaining chip against Microsoft and to potentially have a browser of their own to distribute./nThe overpayment for Netscape could also be explained by AOL's previous motivation to do a stock swap with a company whose stock they believed had real intrinsic value./nSome speculate that AOL was also interested in Netscape's Netcenter.
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