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"Mozilla Foundation"

I'd be interested to know if this is a non-profit org.

If so, it explains why AOL has spun it off. They can write off expenses involved in developing mozilla rather than flat out killing it. It's alway better to give away your money at the end of the year to a group like this than the IRS.

The danger is that Time-Warner is beginning to dominate the picture, and they may ultimately decide this is an unwanted piece of AOL's legacy. That's why it is important that Mozilla Foundation owns the IP rights.

I like Mozilla (I use firebird for my personal browsing) but I don't see it becoming a direct competetor to MS by itself. I do see the potential that it's many open source offshoots will erode IE's numbers over time.

Netscape is dead now. Nobody is officially going to say it, but it will wither on the vine.

IE is also dead as a stand alone browser.

I suspect you're right about the tax advantages AOL will enjoy from this spin-off. Although, I think AOL is no longer very interested in Mozilla.

I just don't see what AOL's long-term strategy is. Microsoft will always give the advantage to MSN.