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November 18, 1998: 7:54 a.m. ET
America Online's exclusive browser contract with Microsoft is running out
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NEW YORK (CNNfn) - With only days remaining in its exclusive relationship with Microsoft Corp., America Online is reportedly reviewing its options and even talking with Microsoft archrival Netscape Communications.
AOL and Microsoft entered into a mutual promotional contract in 1996, with the online service provider making Microsoft's Internet Explorer browser software available to its 14 million registered users.
In return, Microsoft included AOL registration information in the Internet folder of Windows 95, placement comparable to that enjoyed by its own Microsoft Network.
However, according to the Wall Street Journal, AOL is discussing the possibility of replacing Microsoft's browser with Netscape's Navigator when the deal expires January 1, or else offer both browsers side by side.
Microsoft's relationship with AOL has been strained by the ongoing antitrust trial in which the government and 20 state attorneys general allege Microsoft abused its operating systems monopoly to drive Netscape out of the browser market.
"The trial really hit home for us that we have to think carefully about what kind of relationship we should have with Microsoft in the future," an unidentified AOL executive told the Journal.
Although Microsoft lawyers have portrayed AOL Senior Vice President David Colburn, who testified in the trial, as an isolated voice within America Online, AOL chief executive Steve Case has told reporters that Colburn spoke for the company.
"He will explain our view of our relationship with Microsoft, which you can imagine is a complex relationship in that we do license technology from them, but we also compete vigorously with them," Case said prior to the publication of Colburn's pretrial testimony.
AOL's chief arena of competition with Microsoft revolves around the software giant's Internet arm, the Microsoft Network.
Over the last several months, Microsoft has bought and bundled together a plethora of small Web sites, a strategy that analysts say is aimed at consolidating the company's online presence.
"MSN is fundamentally important for us," Microsoft President Steve Ballmer said Monday. "The upside is huge."
However, such a consolidated Internet presence or "Web portal" has always threatened AOL's business model, which provides unique information and entertainment to registered members - mostly home computer users -- in exchange for subscription fees.
Netscape, on the other hand, is a leading Web site for office users, an audience that AOL is eager to tap.
AOL had no comment on the Wall Street Journal story.
America Online shares (AOL) gained 4-1/8 to close at 150-3/4 in Wednesday's general tech stock surge. Microsoft (MSFT) added 3-1/16 to 111-7/8 while Netscape (NSCP) ended up 3/4 at 29-1/4. 
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