AOL to leave $600m at the Gateway

NEWS AOL is investing $600m in PC maker Gateway, amending a two-year-old marketing and investment agreement made between the two companies. A payment of $200m is to be invested into Gateway series A convertible preferred stock and the remaining $400m is scheduled for investment later this month. The agreement - announced in 1999 - called for AOL to invest a total of $800m in Gateway to help relieve the computer manufacturer of interest payments on debt it sold to AOL. The deal in turn would help finance AOL's internet service. But a Gateway spokeswoman said the agreement has since been pared down to $600m as the company no longer needs the extra money. Last Friday shares in Gateway fell 10 cents to $9.83.