Netscape Execs Sold Shares As Stock Fell

MOUNTAIN VIEW, Calif. - Netscape Communications Corp.'s chief executive and co-founder each sold nearly one-fifth of their stakes last month as the Internet software maker's shares were in a midst of a 50 percent plunge.

President and Chief Executive Jim Barksdale sold 17 percent of his holdings, or 1.28 million shares, for about $81 million. He sold the stock for between $51 and $71 a share from Feb. 5 to Feb. 29, according to the Washington Service, which tracks insider filings. Barksdale now owns 6.46 million shares.

Vice President Marc Andreessen, the company's co-founder, sold 360,000 shares, or about 18 percent of his stake, for about $21.9 million. Andreessen now owns 1.6 million shares.

Five other executives sold a total of about 1 million shares for $65 million over the same 25-day period.

"When insiders are selling into a price decline, it's a little ominous," said George Shirk of the Insiders newsletter, which tracks insider buying and selling. "I would look at this as really bearish."

A Netscape spokeswoman said the executives were selling to reap a benefit from the company and diversify their holdings. Netscape stock has more than tripled since the company went public in August. Employees were restricted from selling a total of 22.8 million shares until six months after the initial public offering, the company said.

"Most of us have a great deal of our net worth tied up in this company," said Rosanne Siino, a company spokeswoman. "If you turn this scenario around, people are holding onto a majority of their stock because they believe in the company."

The sales come as Netscape faces tougher competition from Microsoft Corp., the world's largest maker of personal-computer software. Although Netscape shares are higher than they were at their public offering, they have lost half their value since December, when Microsoft outlined its Internet strategy.

While Netscape's shares were falling, Microsoft saw its stock increase more than 19 percent over the same period, rising from $86 on Dec. 5 to $102.375 yesterday.

Netscape shares hit an all-time high of $85.50 on Dec. 5, adjusted for a 2-for-1 split. Shares closed at $43 yesterday, up 1.

Microsoft and Netscape are vying for control of the market for Internet browsing software. To keep ahead of Microsoft, Netscape signed up a slew of partners to distribute its browser, including AT&T Corp., America Online Inc. and CompuServe Inc.

In a surprise move, however, Microsoft this week bumped Netscape as America Online's main partner, signing a broad marketing and licensing agreement with the No. 1 online service.