America Online (NYSE: AOL) was up 9/16 at 50 1/16 in early trading Wednesday after announcing that WorldCom (Nasdaq: WCOM) will market AOL to its residential and long-distance customers.
As part of the “multi-year” alliance, WorldCom will offer its customers incentives, such as an hour of free calls a month, for joining AOL. It will also offer its residential ISP customers an opportunity to convert to AOL and receive benefits.
The companies called the agreement “another step in the growing strategic relationship” between them. “This alliance widens the door for future WorldCom consumer initiatives with AOL,” said Terry Macko, senior vice president of marketing at WorldCom.
WorldCom is also offering its employees incentives to join AOL, which will be the preferred provider on specially priced PCs.
WorldCom shares also rose, trading up 3/4 at 37.