AOL Seeks to Acquire Bertelsmann's Stake in AOL Europe

Strategic Insights -

AOL, in a bid to further consolidate its European presence, is reportedly negotiating to acquire Bertelsmann's 50 percent stake in AOL Europe, a joint venture between the two companies. This move would make AOL Europe a wholly owned subsidiary of AOL US, following AOL's decision to merge with Time Warner, which Bertelsmann considers a media rival. Meanwhile, AOL Europe has announced a significant increase in its subscriber numbers, with a total of 3.4 million users of AOL and Netscape Online, plus 400,000 CompuServe users, bringing the total to 3.8 million.

Key Takeaways:

  • AOL is negotiating to acquire Bertelsmann's 50 percent stake in AOL Europe, making it a wholly owned subsidiary of AOL US.
  • The decision to acquire Bertelsmann's stake is driven by AOL's merger with Time Warner, which Bertelsmann considers a media rival.
  • AOL Europe's subscriber numbers have increased significantly, reaching 3.8 million, up from 2.8 million in September.
  • The increase in subscriber numbers is attributed to AOL's penny-per-minute access program and the success of its Netscape free-to-subscriber Internet service.
  • AOL expects to move into the No. 1 slot in the UK, pushing Freeserve into the No. 2 position.
  • The acquisition of Bertelsmann's stake in AOL Europe would solidify AOL's position in the European market.
  • Andreas Schmidt, head of AOL Europe, attributes the surge in subscriber numbers to AOL's penny-per-minute access program and the success of its Netscape free-to-subscriber Internet service.

Statistics:

  • AOL Europe's subscriber numbers have increased from 2.8 million in September to 3.8 million, a 36% increase.
  • 3.4 million users are subscribed to AOL, while 400,000 users are subscribed to CompuServe.
  • AOL expects to move into the No. 1 slot in the UK, pushing Freeserve into the No. 2 position.
  • AOL's merger with Time Warner has driven the decision to acquire Bertelsmann's stake in AOL Europe.

Sources:

  • "AOL bids to buy Bertelsmann's 50pc AOL Europe stake", The Observer, Feb. 6 edition.
  • "AOL Europe to pass Freeserve as subscriber numbers soar", The Sunday Times, Feb. 6 issue.
  • AOL's Website, http://www.aol.com.
  • Reported by Newsbytes.com, http://www.newsbytes.com.