Yahoo! Aims To Simplify Internet Setup.

Yahoo! Inc. Thursday made an acquisition designed to drive new Internet users straight to its content. The company puchased Encompass Inc., a maker of custom-designed software that enables new users to quickly sign up for Internet access. Yahoo! will pay $130 million for the company. Encompass_ software, which is shipped by PC or hardware manufacturers, automates the Internet provider registration process and also sets up a personalized Yahoo! start page. During the registration process, Encompass collects detailed demographic information which is passed on its partners. A number of PC makers and ISPs are Encompass partners, including Acer, CTX, Dell Computer Corp., Diamond Multimedia, Hewlett-Packard, Micron, Toshiba, Sony, AT&T WorldNet, EarthLink and GTE. Yahoo! President and Chief Executive Officer Jeff Mallett said the deal will expand the business services offered to strategic partners and is consistent with its desire to promote Yahoo! through a variety of platforms. John Wilcutts, Encompass_ president and chief executive officer, said the deal builds on a distribution relationship the two companies have had for more than a year.