This time in '99: Compaq/Yahoo tie-up leaves AltaVista out in the cold

In our "This time in '99" series, we take a daily look back at the agenda-setting stories as they were 12 months ago. We also cast an eye over the most influential news "This week in '99" every Friday in the video news bulletin

By Polly Raymond, 23 March 2000 04:00

NEWS This is how the original story broke on 24 March, 1999: Compaq has signed a partnership with Yahoo in the UK and Ireland to bring localised Net content to its PC customers. Under the deal, the hardware giant will customise its keyboards with buttons designed to perform Internet functions - one of which will link straight through to http://www.yahoo.co.uk. The partnership could come as a surprise to Web watchers, as Compaq owns AltaVista - one of Yahoo's portal rivals - having inherited the company through its 1998 acquisition of Digital. A spokeswoman for Compaq explained: "Essentially AltaVista doesn't have a huge amount of local presence in UK and Ireland, which is the main problem." She admitted that the two portals compete at a certain level - but refused to comment on whether AltaVista will feel betrayed by the decision. Clive Longbottom, strategy consultant at CSL research group, commented: "AltaVista never really made it as a full portal. It's not as customisable as Yahoo." But Compaq isn't planning to scrap its portal altogether, according to Longbottom. "It's clear Compaq isn't planning to pit AltaVista against Yahoo. It appears, though, that no one there seems to have any idea what to do with it."

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