NetZero, Inc. (Nasdaq: NZRO) rose 3 5/32 to 11 7/16 Monday after Qualcomm, Inc. (Nasdaq: QCOM) said it invested $144 million in the free Internet access provider. The investment gives Qualcomm a 10 percent stake in NetZero.
NetZero will use Qualcomm’s Eudora program as the e-mail system for its users, with the two companies sharing revenue from the ads that are displayed in the e-mail.
NetZero, which claims to be the largest provider of free Internet service, wants to be a leader “across a wide range of connectivity platforms,” including high-speed wireless, broadband and cellular, said Chairman and Chief Executive Officer Mark R. Goldston. “Qualcomm’s investment reinforces NetZero’s already strong capital position and gives us an incredible platform for growth,” he said.
Qualcomm fell 9 7/8 to 99 5/8.