Microsoft, RealNetworks near settlement?

Microsoft is nearing a settlement of RealNetworks' long-running antitrust lawsuit with a deal valued at $750 million, according to reports.

Under terms of the settlement--which could still fall through--Microsoft would offer a combination of cash and promotions for RealNetworks' music and game services through Microsoft's online services and software, The Wall Street Journal reported Tuesday, citing people familiar with the matter. In addition, the newspaper said, the two companies would collaborate on technology initiatives in the future.

A joint announcement of a possible deal could come as early as Tuesday, the Journal said. Microsoft and RealNetworks declined to comment.

A press conference is scheduled for 10 a.m. PDT Tuesday with Microsoft Chairman Bill Gates and RealNetworks CEO Rob Glaser.

Microsoft has paid billions of dollars to resolve similar claims, including $750 million to Time Warner in 2003 to end a suit related to Time Warner's Netscape, and $1.95 billion in 2004 to end a suit by Sun Microsystems that alleged Microsoft competed unfairly against Sun's Java technology.

The promotional elements of the settlement could give RealNetworks a boost as it competes against Apple Computer in the digital music market.

People familiar with the matter say the two companies are discussing a plan for Microsoft's MSN service to promote Rhapsody, a RealNetworks service that competes with Apple's iTunes store in the digital music business, the newspaper said.

The deal would bolster RealNetworks' ability to make acquisitions and launch initiatives in the online entertainment market, the newspaper said.

RealNetworks filed its antitrust suit against Microsoft in federal court in San Jose, Calif., in December 2003, alleging Microsoft used its Windows operating system to hobble RealNetworks' position in the market for media software for personal computers.

RealNetworks initially claimed damages in excess of $1 billion.