“It’s a case of Goliath meets Goliath.
Popular Internet service provider America Online announced last week it will invest $800 million in San Diego-based PC leader Gateway over the next three years.
As part of the deal, AOL’s service will be included with software loaded in each factory-direct Gateway computer. Subscribers to Gateway’s own Internet service, Gateway.net, will be transferred to AOL.
Gateway has also promised to spend $85 million in advertising its products and services on AOL.
In addition, the two companies plan to develop and market hand-held devices, as well as establish a co-branded Web site for selling software online.”