Corel Corporation (Nasdaq: CREL) is a long-term player in the software business. It has products like WinZip, CorelDRAW, iGrafx, WordPerfect, and so on. However, with competitors like Microsoft Corporation (Nasdaq: MSFT) and even Google, Inc. (Nasdaq: GOOG), it's been particularly tough.

Well, Corel's largest investor (owning 69%), Vector Capital, has expressed interest in taking the company private. Keep in mind that Vector took Corel private back in 2003 (at $1.05 per share).

As for the current proposal, it's for $11 per share (the 52-week high on Corel is $14.37). And, Corel has now hired a financial advisor, Genuity Capital Markets, to evaluate the proposal as well as look at other alternatives.

Corel Corp. (NASDAQ: CREL) is a veteran of the tech world. One of its main products, WordPerfect, was one of the first word processors for the PC and despite the onslaught from Microsoft Corp. (NASDAQ: MSFT), is still selling.

But there are a flood of alternatives now – especially online versions. In fact, Google Inc. (NASDAQ: GOOG) has been piecing together an Office-like suite of productivity applications, which it plans to sell for $50 per year.

According to an announcement today, Corel is about to fight back, launching a free online version of WordPerfect, called Lightning. It's currently in the beta phase.This looks like it is just the beginning and I'd expect more applications to be bundled to the Lightning.

Corel is taking a freemium approach, meaning that after users download the free version and use it, they might be more inclined to eventually buy the premium version.

On its face, it doesn't seem like it will get traction. However, Corel plans to partner with other companies so as to share revenues. And, over the years, Corel has put together a massive ecosystem of partnerships.

You can check Lightning out at the Corel Web site.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.