Article: IBM to Acquire Majority Interest in Web-Design Software Firm.(Originated from San Jose Mercury News, Calif.)

SAN JOSE, Calif.--Mar. 20--International Business Machines Corp. that it intends to acquire a majority interest in a NetObjects Inc., a 1 1/2-year-old Redwood City company that produces software to design World Wide Web sites.

Neither IBM nor NetObjects would disclose the size of the deal, but one source close to the companies put it at well above $100 million.

The deal gives IBM controlling interest in a company renowned for its graphic sizzle. But it also raises questions about how the new alliance will fit in with Web design tools already offered by IBM's Lotus subsidiary.

For NetObjects, the deal offers both a quick financial ...

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