Microsoft Agrees to Pay Gateway $150M

Microsoft Corp., the world's biggest software maker, has agreed to pay Gateway Inc. $150 million over four years to settle a legal dispute and the companies will work together on the marketing and development of Gateway personal computing products. As part of the settlement announced Monday, Gateway will release all antitrust claims against Microsoft based on past conduct.

Gateway shares rose 20 cents, or nearly 5 percent, to $4.28 in premarket activity. Microsoft shares climbed 10 cents to $25.04 in premarket trading. Gateway expects to use the funds for marketing initiatives, including advertising, sales training and consulting, as well as for the research, development and testing of new Gateway products that can run current Microsoft products and Microsoft's next-generation operating system and productivity software.

News source: Associated Press via

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