Microsoft buys into rival Corel

Brand Republic 03-Oct-00

Microsoft is to invest $135m in beleaguered Canadian software rival Corel, making the software giant one of its largest shareholders.

LONDON (Brand Republic) - Microsoft is to invest $135m in beleaguered Canadian software rival Corel, making the software giant one of its largest shareholders.

Corel owns the WordPerfect office software, which is a long-time rival to Microsoft’s own desktop office range.

Microsoft is buying 24m non-voting convertible preferred shares in Corel. The two companies will work together to develop, test and market new products related to Microsoft’s internet-based .NET initiative.

Corel has this year been beset by financial problems, cutting 450 jobs in a $40m cost-saving move. A proposed merger with Inprise collapsed and the company’s chief executive Michael Cowpland resigned in September.