U.S. OKs Microsoft’s Purchase of WebTV

Microsoft Corp. received Justice Department approval of its $425-million acquisition of Palo Alto-based WebTV Networks Inc., a firm that produces a system for browsing the Internet on television using a remote control and a set-top box. Justice Department antitrust investigators decided not to challenge the combination after concluding that a number of other firms will soon be able to compete with Microsoft’s browser. The approval clears the way for the largest Internet purchase ever for Microsoft, which is using acquisitions to ensure its continuing dominance of the software market. When the companies announced the acquisition in April, they said WebTV would use Microsoft technologies, such as its Windows CE software operating system for hand-held computers and entertainment applications. Shares of Redmond, Wash.-based Microsoft fell 88 cents to close at $140.88.