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Yahoo, Netscape end pact
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May 22, 1998: 12:50 p.m. ET
Yahoo will discontinue Netscape guide; companies say decision is mutual
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NEW YORK (CNNfn) - Yahoo! Inc. and Netscape Communications Corp., two of the leading Internet content companies, said they have ended their strategic relationship.
The companies said late Thursday that Yahoo! will not serve out the remainder of its contract to power the Netscape Guide by Yahoo! site.
The guide will be removed from Netscape's site July 1.
Earlier Thursday, Netscape announced it no longer will include Yahoo! among its premier Internet search providers.
The companies stressed the decisions were mutual.
"Neither company was getting what they wanted from the service," said Netscape spokeswoman Jodi Kramer. "As Netscape moves forward, it is trying to become a major destination. The company will have a new breadth of services for consumers and business users within the next 60 days."
Analysts agreed that the move benefits both companies.
"Netscape is competing with Yahoo!," said Mary McCaffery, an analyst at B.T. Alex. Brown. "Pulling the Yahoo! guide makes sense. Yahoo! reducing the amount of money it pays to Netscape makes sense. It is not a surprise."
Shares of Yahoo! (YHOO) fell 2-1/4 to 114-3/4 in midday trading. Netscape (NSCP) shares shed 1-9/16 to 24-13/16. 
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