Feeds

AOL mops up Bertelsmann stake

Time Warner makes them best of enemies

  • alert
  • submit to reddit

Internet Security Threat Report 2014

It's been on the cards since AOL acquired Time-Warner, but now it's happened: AOL has agreed to buy Bertelsmann's 50 percent stake in AOL Europe and AOL Australia to AOL for $6.75 to $8.25 billion - but not until after January 2002. In Europe, AOL has around 15 per cent of the market, according to Datamonitor. CEO Thomas Middelhoff told Welt am Sonntag that Bertelsmann now has DM75 billion ($37 billion) for acquisitions after deciding to concentrate on content. The sum is arrived at if Bertelsmann mortgages the AOL cash, if it is needed before the transaction closes. Immediate plans are to fill gaps in Bertelsmann's Hispanic, French, Italian and Asian portfolio, with perhaps US newspaper acquisitions and more TV interests in Europe. Another objective is probably an increased presence in online book sales -- the company has been digitising all its intellectual property with a view to selling on-demand books over the Web. So far, Bertelsmann has sold AOL shares worth more than DM1 billion. After the disposals, Bertelsmann will still have 0.7 per cent of AOL, which it intends to sell at an opportune moment, Middelhoff said. Middelhoff had announced his resignation from the AOL board, if the Time-Warner merger went through, because in some areas there was direct competition. The subsequent intended merger between Time-Warner and EMI extended the area of overlap to the music business, after Bertelsmann failed to acquire EMI. However, Sony Music could still be a Bertelsmann target. BOL International, the Internet music/bookstore will also be floated next quarter, it was announced over the weekend. Bertelsmann was given the chance to merge with AOL before the Time-Warner deal was sealed, but declined to do so, according to a report in Time Europe. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.