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The stock's value soared to US during the first day of trading, nearly a record for first-day gain.
The stock closed at US.25, which gave Netscape a market value of US.9 billion.
Microsoft quickly released several successive versions of Internet Explorer, bundling them with Windows, never charging for them, financing their development and marketing with revenues from other areas of the company.
This period of time became known as the browser wars, in which Netscape Communicator and Internet Explorer added many new features and went through many version numbers (not always in a logical fashion) in attempts to outdo each other.
Marc Andreessen explains, "If they had shipped a year earlier, we probably would have done that instead of Netscape." The company's first product was the web browser, called Mosaic Netscape 0.9, released on October 13, 1994.
It is alleged that several Microsoft executives visited the Netscape campus in June 1995 to propose dividing the market (an allegation denied by Microsoft and, if true, would have breached antitrust laws), which would have allowed Microsoft to produce web browser software for Windows while leaving all other operating systems to Netscape. Microsoft released version 1.0 of Internet Explorer as a part of the Windows 95 Plus Pack add-on.
According to former Spyglass developer Eric Sink, Internet Explorer was based not on NCSA Mosaic as commonly believed, but on a version of Mosaic developed at Spyglass (which itself was based upon NCSA Mosaic).
The Netscape brand belonged to the Netscape Communications Corporation (simply known as Netscape Communications), an independent American computer services company that developed the Netscape web browsers such as the Navigator.
The company was originally known as Mosaic Communications Corporation.
On August 9, 1995, Netscape made an extremely successful IPO.