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Microsoft pays $761M to settle RealNetworks dispute
Tuesday October 11, 2:05 pm ET
Microsoft Corp. and rival RealNetworks Inc. said in a joint news release that they have settled all claims in their antitrust case with three agreements worth $761 million in cash to RealNetworks.
Microsoft will pay $460 million in cash upfront to resolve all damages claims and provide Seattle-based RealNetworks with long-term access to Windows Media technology that "will enhance Real's media software solutions," according to the news release.
The other two agreements form a wide-ranging digital music and games collaboration, under which Microsoft will pay $301 million in cash and provide services over 18 months in support of RealNetworks' product development, distribution and promotional activities, according to the release.
Microsoft's MSN will promote RealNetworks' Rhapsody digital music subscription service, and MSN Games and Xbox Live Arcade will promote RealNetworks' digital game services, according to the release.
In return, RealNetworks "will take steps to support MSN Search, and (the companies) will jointly promote use of Windows Media technologies with Rhapsody to Go."
The initial reaction to the news by investors was favorable to RealNetworks. Its shares (NASDAQ: RNWK - News) were up more than 35 percent at $7.78 by mid-morning after trading was halted for a short period Tuesday morning. Microsoft's shares were trading down slightly at $24.33.
Published October 11, 2005 by the Puget Sound Business Journal
