Compaq sets AltaVista up on its own

NEWS Compaq is setting up AltaVista, the search engine and portal it acquired as a result of its buyout of Digital, as a separate subsidiary company. It is also planning to float the company. In a statement, Compaq CEO, Eckhard Pfeiffer, said: "By establishing AltaVista as a separate company, it can better focus on providing the best user experience on the Internet." Compaq has also reached agreement with the Microsoft Network (MSN) for AltaVista to become the primary search engine for MSN users. In return the portal's customers will get a version of Microsoft's Hotmail - but with AltaVista branding. Noah Yasskin, analyst at Jupiter Communications, said: "It makes a lot of sense as a subsidiary and the venture with Microsoft is needed. AltaVista was always a leading search engine but couldn't compete with the marketing spend and rich, sticky functionality of the big portals." But Yasskin warned: "It is kind of late."