Corel’s receipt of $135 million from Microsoft drove its stock price up 50 per cent yesterday.
The Microsoft influx of capital, part of a strategic relationship that will see the companies jointly develop Microsoft's .Net Internet initiative, helped Corel's stock price jump to $6.12 a share in mid-afternoon trading, up 66 per cent, or $2.44 a share, from its Monday closing price. Corel's stock price has faltered in recent months and slumped to as low as $2.90 a share on August 7.
Corel also announced that Derek Burney, who was acting as interim president and chief executive officer, has been named to the position of president and chief executive officer, and also been appointed to the company's board of directors.
Corel and Microsoft said they plan to develop, test and market products related to Redmond, Washington-based Microsoft's .NET platform - a broad initiative to supply products and services that should enable new types of Web-based services. Trade shows, product launches, and joint marketing efforts are examples of the companies' shared plans for the future.
The announcement came as a surprise to some industry watchers. The two companies have been fierce rivals in the productivity applications market.