Feeds

AOL to blow $6.7bn on AOL Europe

Ouch

  • alert
  • submit to reddit

Build a business case: developing custom apps

AOL Time Warner is tipped to announce today that it is to acquire Bertelsmann's half of AOL Europe for $6.7 billion (£4.66 billion) in cash and shares.

The monster Internet and content outfit is due to brief analysts about its outlook for the coming year.

Many commentators believe AOL will signal that, like other companies in the TMT sector, that it has not been cushioned from the global economic slowdown and is expected to lower its predictions for growth over the coming year.

But it's also thought that AOL will also use the opportunity to explain more fully its deal with media giant Bertelsmann, which was made public in March 2000.

At the time AOL agreed to buy Bertelsmann's 50 per cent stake in AOL Europe - a joint venture between AOL Inc and Bertelsmann - for between $6.75bn and $8.25 billion, but not until after January 2002.

However, that figure was determined at the height of the dotcom boom when valuations were sky-high, and so, is likely to be at the bottom end of the range. A more realistic valuation today for the half share would be less than $2 billion.

No one at AOL Time Warner was available for comment by press time. ®

Related Story

AOL mops up Bertelsmann stake

Boost IT visibility and business value

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.