The move will see the brand disappear and force the service's 2.5m customers to change their email addresses to Wanadoo. The move would mean a major marketing and advertising campaign. Freeserve's agency is M&C Saatchi.
The change could happen as early as next year. The news comes a week after it was revealed that Freeserve founder and CEO John Pluthero is to leave the company to become CEO of Energis.
Freeserve was launched in September 1998 and completely shook up the market. It forced its rivals to follow it when it launched its subscription-free internet service. Owners Dixons floated 20% of the company in 1999, when it became the UK's biggest dotcom float.
It was acquired by France Telecom subsidiary Wanadoo in 2000.
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