Shares of NetZero were up 3 cents to close at 95 cents. In extended trading, shares were up 2 cents to 97 cents. The combined companies would have 7 million subscribers, making it second behind America Online, which has 29 million subscribers. Microsoft's MSN has 5 million subscribers. The new customer base was cited as the key reason for the merger, which could allow the new company to ask for higher advertising rates.
Advertising is the traditional money earner for providers of free Internet access.
When you are dealing with advertising, more eyeballs are better. Juno chief executive Charles Ardai said his company also will bring to the table its expertise in converting free users to paying customers. NetZero, meanwhile adds a fresh base of customers for Juno to lure into paid service. United Online Inc. NetZero stockholders will own about 61.5 percent of the outstanding shares in United Online. Juno stockholders will own the rest, once the deal closes sometime before the end of the year.