Netscape Buying NewHoo to Challenge Yahoo

In a bid to compete with Yahoo Inc., the most popular general-interest Web portal site, Netscape Communications Corp. is expected to announce today that it has acquired NewHoo Community Directory Project. NewHoo, which uses thousands of volunteer editors to choose sites for inclusion in its Web directories, mimics the look and feel of Yahoo’s directories. However, Yahoo and a few other sites employ surfer librarians instead of volunteers. Chris Tolles, a project manager for Netscape’s NetCenter site, said that with a potentially unlimited editor core NewHoo can access a much larger subset of the Web. “The idea is good,” said Patrick Keane, senior analyst with Jupiter Communications in New York. “But [many users] might find it annoying that a kid in Idaho interested in sports is going to deliver all of the relevant information on golf.” Tolles said the service uses a peer review model to ensure quality control. Terms of the deal were not disclosed.