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MICROSOFT MAKES NICE WITH HOTMAIL

MICROSOFT HAS LOTS OF E-mail products and services to offer--but it still wants more. The Redmond (Wash.) software giant is talking with upstart Hotmail about the possibility of using the Sunnyvale (Calif.) company's free E-mail service on some of its Web sites, say sources close to the companies. The relationship could include an equity investment in Hotmail by Microsoft--or even an outright buyout. Neither company will comment. But it's not hard to see the attraction: Hotmail's service has grown from 100,000 members a year ago to 8 million, according to Electronic Mail & Messaging Systems.

EDITED BY PAT WECHSLER


Updated Dec. 4, 1997 by bwwebmaster
Copyright 1997, Bloomberg L.P.
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