Metromedia International Group Acquires 70% of Romanian ISP, FX Internet
NEW YORK--(BUSINESS WIRE)--June 28, 2000--Metromedia International Group, Inc. (AMEX:MMG), which through Metromedia International Telecommunications, Inc. ("MITI") is the owner of various interests in communications joint ventures in Eastern Europe, the former Soviet Union and other emerging markets, today announced that it has acquired a 70% ownership position in FX Internet. FX Internet, based in Bucharest, is a leading ISP, web hosting and domain registration service in Romania.
FX Internet provides dial-up, leased line and wireless Internet access services in Romania with 9,100 active subscribers, offering Internet connectivity to customers in Bucharest, Brasov, Prahova and Constanta counties, reaching a total population of approximately 5 million. MITI is paying $2.5 million for its 70% interest in FX Internet, $2 million of which will be paid to the existing shareholders and $500,000 of which will be used to expand its network to 8 additional regions before year-end to bring its total serviceable population to over 8 million.
FX Internet, working in combination with Romsat TV, MITI's wholly owned cable television operator in Romania, will enable MITI ventures to offer bundled TV and Internet services to Romsat TV's approximately 100,000 existing customers with competitive advantages, such as tiers of service and discounts, that other operators in the Romanian market are currently unable to duplicate.
Stuart Subotnick, MMG's President and Chief Executive Officer said, "We are delighted to work with FX Internet and its key personnel in expanding the range of services we are able to offer in Romania. FX Internet has a strong management team, which will remain with the company, and very strong brand recognition in Romania."
James Hatt, President and Chief Executive Officer of MITI, said, "This transaction, which is part of our overall convergence strategy, greatly enhances the value of our Romanian cable television business by allowing us to bundle services and sets the stage for Internet/portal development in Romania. We will gain significant market share in the Romanian Internet market at a time when it is experiencing rapid growth." |
