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The subsidiary will develop new internet communications software based on the Thunderbird code and brand, which could include an instant messaging program which has so far been left to extensions due to a lack of development resources.

The subsidiary will also work to invoke the same open-source support and buzz around Thunderbird development that currently surrounds Firefox.

The new company will be backed by $3 million worth of funding from Mozilla and headed

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up by Dr David Ascher, current vice president of engineering at ActiveState.

"David will have to find a revenue stream, he will have to decide what direction to take it in," says Tristan Nitot, president of Mozilla Europe. "Instant messaging is the hot thing among young people. New ways of communicating include social networking, VoIP. He has a great product and an installed client base to work from. Thunderbird needs to show there's interest in it. I think Thunderbird's already a great product it just needs to know where to go next. Mozilla Corporation was given $2 million to maintain and launch Mozilla suite, Firefox and Thunderbird, so this is a very generous amount."

The decision to form the subsidiary comes about as a result of July discussions
held by Mozilla on the future of Thunderbird.

Mozilla says that the changes will not affect current Thunderbird users who will continue to receive security and stability updates.