3Com said Monday that it invested US$6 million in Aether Technologies, a wireless data service provider. The companies have been working together to enable 3Com's Palm Pilot handheld computers to send and receive data wirelessly.
Aether will use the money to expand its existing operating facilities.
Aether transmits data like stock quotes and breaking news using radio signals. Radio modems plugged into handheld devices pick up the signals. Aether’s key product is software that translates the signals.
Investors in Aether include Reuters, Telecom Ventures, and Bankers Trust. Aether is working on applications in the financial, transportation, and messaging industries.
Separately, 3Com (COMS) also said it agreed to invest $5 million in Orion Israel Fund LP, an Israeli venture capital fund.
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Motorola buys Lucent unit: In a move to boost its digital cellular phone business, Motorola said on Monday it agreed to acquire Lucent Technologies' phone operations and one of its research centers.
The companies didn't disclose terms of the cash purchase. Analysts pegged the transaction's value at US$100 million to $200 million, but Motorola spokesman David Pinsky said the estimates were "far and above what the actual deal represents."
The purchase includes a laboratory in Piscataway, New Jersey, and about 300 Lucent engineers. Motorola (MOT), the world's second-biggest telecommunications equipment company, plans to operate the facility as a design center for digital wireless phones, a technology expected to see rapid growth.
With the transaction, Lucent (LU) would begin to shed businesses tied to its failed cellular telephone joint venture with Philips Electronics, which ended in October.
Motorola's stock rose $1.44 to $60.31 and Lucent gained $5.50 to $103.88.
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Onsale Yahoos: Shares of Onsale (ONSL) surged as much as 37 percent on Monday after the Internet auctioneer said it will provide links from its auctions to the Small Business page on Yahoo.
Onsale said it will update information every 15 minutes on the site. Items for sale from Onsale include personal computers, consumer electronics, housewares, sports and fitness equipment, vacation and travel packages, and specialty foods.
The company's links to Yahoo Small Business will focus on items of interest to small businesses, such as computers, printers, and scanners.
The links to Yahoo will broaden Onsale's reach. Yahoo (YHOO) is one of the most popular sites on the Web, with an estimated 95 million pages of data viewed a day, and is second only to Netscape Communications in terms of online advertising revenue.
Onsale shares vaulted $24.31 to $68. Earlier, the stock traded as high as $71.50. The company went public in April 1997 at $6 a share.
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AOL gets on more Dell PCs: America Online said it agreed to give Dell Computer customers 100 hours of free AOL access. In addition, AOL will put software for accessing its online service on every Dell PC.
The two companies said Monday that Dell's Dimension and Inspiron personal computers will begin shipping with a CD containing AOL's software.
By early next year, Dell (DELL) buyers will receive their computers with AOL software already installed. This customized version of AOL will include links to Dell's Web services, ConnectDirect.
Introduced in September, ConnectDirect helps Dell customers choose an Internet service provider, build a personal start page, and offers links to Dell's customer service and support organizations.
AOL (AOL) competitors AT&T World Net Service and Excite provide services to Dell customers through ConnectDirect.
Reuters contributed to this report.
