America Online, Bertelsmann, Canal+ and Cegetel Announce an Alliance in Internet Online Services in France.PARIS--(BUSINESS WIRE)--Jan. 29, 1998--America Online, Inc. (NYSE NYSE See: New York Stock Exchange : AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. ), Bertelsmann, Canal+ and Cegetel announced today that they have signed a memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. to pool their Internet activities in the French market. Under the agreement, Cegetel and Canal+ will jointly acquire a majority stake in AOL France and CompuServe France (pending the completion of the CompuServe Europe acquisition by America Online See AOL. and Bertelsmann). Cegetel will convert members of its Havas On Line service to the new venture. Under the brand names 'AOL par Cegetel' -- aimed at the consumer market -- and 'CompuServe par Cegetel' -- designed for professional and small business users, the group will offer services via traditional telephone access. Under the brand name 'AOL Par Canal +' the group will offer a consumer brand delivered using cable and satellite technologies. The new entity -- combining AOL France, CompuServe France, and Havas On Line -- will total over 200,000 subscribers. Clearly positioned as the leading Internet online services provider in France, the service will be able to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the superior online technology and internationally recognized brands AOL and CompuServe, as well as the commercial dynamism of Cegetel. Today's announcement underscores the four partners' determination to accelerate growth in the French market by continuing to offer the best Internet online service in a package that is easy to use, convenient, and offers unique content unavailable elsewhere. The group believes that the French market, in particular, is poised for rapid growth. French consumers are just beginning to adopt this new interactive medium. Currently only 2% of the French population is connected to the Internet versus 6% in the UK, 7% in Germany, and 20% in the US. The aim of this agreement will also be to optimize the distribution of Internet online services through various available platforms : telephone, cable, and satellite. It will give prominent placement to original programming, produced by Canal +, including animated images. The parties intend to finalize their agreement over the next few weeks in order to deliver an offering to Internet users in the Spring of 1998. "This alliance brings together the four most innovative and dynamic partners in the field of telecommunications (Cegetel), Internet online services (AOL-Bertelesmann), and media (Canal+). It is a concrete and promising illustration of the strategy of Groupe General des Eaux in those areas and of the convergence of the worlds of telecommunications and content for the benefit of consumers," declared Jean-Marie Messier Jean-Marie Messier (born December 13, 1956) is a French businessman who was Chairman and Chief Executive of the multinational media conglomerate Vivendi SA (formerly Vivendi Universal) until 2002. , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Compagnie Generale des Eaux and of Cegetel. "I am convinced that the technological expertise, the creativity, and the dynamism of the four parties involved will make AOL and CompuServe even more accessible, easy to use, and entertaining. This is a decisive step toward making the Internet a real mass medium in France within the next few years," declared Thomas Middelhoff Thomas Middelhoff (born May 11, 1953) is a German corporate manager. Since May 2004, Middelhoff has been chairman of the supervisory board of Arcandor, and since May 12, 2005 he has been CEO of the company. , Member of the Executive Board of Bertelsmann AG Bertelsmann AG German media company. Beginning as a religious printer and publisher in 1835, the company grew steadily over the next century. Though virtually destroyed by Allied bombing in 1945, it recovered quickly after World War II. . "The decision of these French entrepreneurial leaders in telecommunications and television to join us is an extraordinary affirmation of the potential of the Internet here in France and the growing strength of the AOL and CompuServe brands," declared Steve Case Steve Case (born August 21, 1958) is a businessman best known as the co-founder and former chief executive officer and chairman of America Online (AOL). He reached his highest profile when he played an instrumental role in AOL's merger with Time Warner in 2000. , Chairman and CEO of America Online, Inc. "We believe that this transaction will help us deliver the best possible interactive experience to consumers and business users in France by combining our services' convenience and ease of use with our French partners' knowledge of the market, infrastructure, groundbreaking content, and brand power." "The Internet today is a powerful tool of communication. But to become a real medium, some efforts are still required: to develop programs with a genuine structure and a specific style. This is an exciting challenge for Canal+, which has already developed the most popular content-driven web site in France. In addition, new digital cable and satellite platforms will allow the Internet to become much faster and user-friendly: for me, both as a service operator and as a net surfer An individual who regularly accesses the Internet. , this is very good news. I am confident that the four partners in this agreement will be able to meet this challenge," said Pierre Lescure, Chief Executive Officer, Canal+. America Online, Inc. AOL Networks, based in Dulles, Virginia Dulles, Virginia is an unincorporated census-designated place located in Loudoun County, Virginia, part of the Washington Metropolitan Area. The headquarters of AOL, Orbital Sciences Corporation and ODIN technologies and the former headquarters of MCI Inc. are located in Dulles. , operates the Internet online services division of America Online, Inc., the world's leading Internet online service with over eleven million members worldwide (including over 1 million outside of the US). Founded in 1985, AOL offers its subscribers a wide variety of interactive services including electronic mail, Instant Message features, entertainment, reference, financial information, computing support, interactive magazines and newspapers, as well as easy access to all the services of the Internet. AOL International, founded in 1994, is a division of AOL Networks. Bertelsmann Bertelsmann AG operates as an international media company in dynamic growth markets, occupying top market positions worldwide. About 60,000 employees in more than 300 individual companies provide information, education and entertainment in 50 countries, developing contents and programmes and providing production and other services in the field of media. Sales amount to DM 22.5 billion. The business fields of the company include book clubs, literary and scientific publishing companies, daily newspapers, consumer magazines, trade journals, music and film companies, radio and television stations, Multimedia and Internet online services, printing shops and service companies as well as other technical firms. CANAL+ CANAL+ is Europe's leading pay-television company, with world-class expertise in programming for premium and theme channels and in distribution, with marketing capabilities and subscriber management systems, scrambling and access control technology. Through its subsidiary CANALSATELLITE, CANAL+ launched Europe's first digital interactive television service in April 1996 in France. CANAL+ is also the majority shareholder of CGV CGV Ciudad Guayana, Venezuela , a leading French cable operator. CANAL+ will launch later this year fast Internet access See how to access the Internet. service in France, using the CANALSATELLITE Numerique satellite network, and offer speeds up to 700 kbit/sec. Launched in August 1995, the CANAL+ web site (http://www.cplus.fr) is France's most popular television site. It is also the most frequently visited content-based web site in France. CEGETEL A subsidiary of the Generale des Eaux Group, Cegetel is the leading private telecommunications operator in France with close to 2.8 million clients and net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight in excess of 10 billion French francs. Cegetel has rapidly acquired a very significant position in fields already open to competition, particularly in mobile telecommunications with SFR SFR Swiss Franc (national currency) SFR Société Française du Radiotéléphone (French cellular provider) SFR Single Family Residence SFR Single Family Residence (real estate) , the leading private operator in the French market which represents nearly 40% of the market share, and TAM TAM radiopaging. As of February 1, 1998, i.e. one month after the statutory opening of the telecommunications market, Cegetel will be France's Telecom's main competitor in fixed telephony, under the name << 7 >>. It will be supported by a national network deployed in association with the SNCF SNCF Société Nationale des Chemins de fer Français (French National Railways) SNCF Sans Nous les Cafés Ferment (French) (French Railways). Cegetel has created Cegetel Enterprises, a subsidiary specializing in corporate telecommunications which proposes a global offer of services on both fixed and mobile telephony as well as data transmission. It is developing a particular offer specific to the whole range of services on the Internet, Intranet and Extranet. Cegetel Enterprises has already signed some significant contracts with large industrial and service groups such as AXA AXA Anguilla, Anguilla (Airport Code) AXA Alpha Chi Alpha AXA Animal Crossing Ahead (online forum community/guide to the game Animal Crossing) AXA Auxiliary Artery , Danone, Renault, Airbus and Elf Aquitaine Elf Aquitaine was a French oil company which merged with TotalFina to form TotalFinaElf. The new company changed its name to Total in 2003 . Elf has been maintained as a major brand of Total. . In November 1997 Cegetel acquired Havas On Line, a subsidiary of Havas, specializing in providing access to the Internet. The alliance with AOL, Bertelsmann and Canal+, currently under examination, is part of its development policy in this strategic market. CONTACT: Rich D'Amato America Online 703/265-1746 or Wendy Goldberg America Online 703/265-2359 |
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