NEWS ABOUT OUR POWER-HOUSE!!!!(ON YAHOO)
Monday September 8 6:09 AM EDT
Company Press Release
AOL TO ACQUIRE COMPUSERVE ONLINE SERVICES,
RECEIVE CASH AND GAIN SIGNIFICANT NETWORK
COMMITMENTS IN AGREEMENTS WITH WORLDCOM,
INC. AND BERTELSMANN AG
AOL to Sell Its ANS Communications Subsidiary to WorldCom
Agreements to Accelerate Global Momentum in Core AOL Networks and
AOL Studios Businesses
DULLES, Va.--(BUSINESS WIRE)--September 8, 1997--America Online, Inc. (NYSE:AOL) today
announced that, in exchange for its ANS Communications, Inc. subsidiary, it will acquire
CompuServe Corp.'s worldwide online services business from WorldCom, Inc. and receive
$175 million in cash.
Upon completion of the transaction, valued in total at approximately $425 million, AOL's
European partner Bertelsmann AG will pay an additional $75 million to AOL, and each
company will invest $25 million in an expanded joint venture to operate CompuServe's
European online service.
AOL also entered into a long-term strategic relationship with WorldCom providing AOL with
significantly expanded network capacity for its service at favorable prices. This includes
agreements with WorldCom that will not only allow AOL to expand its current narrowband
access at a faster pace, but also will have the companies collaborating on the deployment
of a next-generation broadband network. Further strengthening their alliance, AOL Chairman
and CEO Steve Case is expected to join WorldCom's board of directors.
In separate announcements today, WorldCom, CompuServe and H&R Block Inc. disclosed
their agreement under which WorldCom will acquire all of CompuServe Corporation,
thereby facilitating this transaction with AOL.
AOL said the WorldCom and Bertelsmann agreements will:
Accelerate AOL's momentum in the global marketplace, especially in Europe; Strengthen its
position in the small business and professional markets; Grow its non-subscription revenue
streams through an increased customer base; Enable it to focus on its core assets - AOL
Networks and AOL Studios - while providing added financial resources and operational
flexibility to grow and enhance those businesses; Enhance the AOL member experience
through the short-term addition of up to 100,000 modems from UUNET, long-term network
commitments from WorldCom, and access to CompuServe's business and professional
content; Improve the CompuServe online customer experience by supporting
next-generation technological innovations now under development by CompuServe, and
exploring possibilities for leveraging AOL's easy-to-use features and products; Realize
immediately the enhanced value of ANS - which it acquired in 1995 for $35 million, while
ensuring reliable network services through WorldCom at favorable prices.
Mr. Case stated: ``AOL has made tremendous strides forward over the past year and this
transaction will boost our momentum by concentrating our focus on AOL's core interactive
services and content businesses. In addition, the acquisition of CompuServe's interactive
services will help fuel our global expansion - especially in the critical European marketplace,
which we believe is poised for tremendous growth. The expansion of our international reach
will help make the interactive medium a global phenomenon and provide us with new
opportunities to apply our scale, expertise and resources. Both AOL and CompuServe online
customers will benefit as we enhance their interactive experiences, providing unmatched
ease-of-use and expanded content to meet their needs.''
Mr. Case added: ``The transfer of ANS to WorldCom will allow us to realize significant
value for an asset which, for the past 2-1/2 years, has been an important part of our
successful effort to build out AOLnet with a diversified portfolio of suppliers. As part of
WorldCom, ANS will be a strengthened supplier of dial-up and Internet access to AOL
Networks. For AOL, the agreement locks in network price savings while partnering us with
a company that can help assure our members the broadest, most reliable access, now and
in the future.
``We also look forward to working with the talented employees of the CompuServe online
services and welcoming them to the AOL family.'' |
