AOL Soars on Microsoft News
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Shares of America Online Inc. jumped more than 10% after Microsoft Corp.’s MSN online network matched AOL’s access fees, easing pricing pressures on the world’s top online service provider, analysts said. Shares of AOL closed up $10 at $97.50 on the New York Stock Exchange, a day after Microsoft raised its monthly charge for unlimited online access to $21.95 from $19.95, matching the rate charged by AOL. The Internet access industry has faced pressure from upstarts offering free monthly service, and analysts said Microsoft’s move signaled its unwillingness to join them, relieving AOL from the pressure to follow.
Friday’s gains extended a rally that began Tuesday, when AOL said it would report record numbers of subscribers for September, as well as a record increase for CompuServe, its other Internet service, analysts said.
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