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Bertelsmann and America Online Form European Joint Venture

Strategic Insights

— 1 min read

The joint venture between Bertelsmann AG and America Online aims to introduce next-generation online and Internet services in Europe, leveraging Bertelsmann's media expertise and America Online's innovative technology. Bernd Schiphorst has been appointed President and Chief Executive Officer of the venture, bringing his experience in building successful new businesses in emerging markets. The joint venture will be headquartered in Vienna, with Schiphorst reporting to the Board of Directors, which will include a representative from Bertelsmann.

Key Takeaways:

  • The joint venture will provide next-generation online and Internet services in Europe, combining Bertelsmann's media expertise with America Online's innovative technology.
  • Bernd Schiphorst, formerly General Manager of UFA Film- und Fernseh- GmbH, has been appointed President and Chief Executive Officer of the joint venture.
  • Schiphorst will report to the Board of Directors, which will include a representative from Bertelsmann.
  • The joint venture is a strategic move for Bertelsmann, which has a 5% stake in America Online and an investment of approximately $55 million.
  • The America Online Board of Directors will expand by one to include a representative from Bertelsmann.
  • Bertelsmann's TV and film business was established under Schiphorst's supervision, and he successfully launched and developed RTLplus, a market leader in Germany.
  • Schiphorst also established the Premiere Pay-TV channel, acquired and set up successful radio stations, and built a licensing business for film and TV rights.
  • Prior to joining UFA Film- und Fernseh-GmbH, Schiphorst held various positions in Gruner+Jahr's publishing business.
  • Bertelsmann is the second-largest media company in the world, employing 57,000 people in more than 300 companies and profit centers across over 40 countries.
  • Bertelsmann's revenues topped approximately €11 billion in its most recent business year, with a net profit after tax of €476 million.

Statistics:

  • Bertelsmann's investment in America Online: approximately $55 million
  • Bertelsmann's stake in America Online: 5%
  • Revenue: €11 billion
  • Net profit after tax: €476 million
  • Number of employees: 57,000
  • Number of companies and profit centers: more than 300
  • Countries of operation: more than 40

Sources:

  • PR Newswire - Vienn, Va., April 18
  • America Online, Inc. and Bertelsmann, AG

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