Bertelsmann, America Online restructure joint ventures

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Bertelsmann AG and America Online are reconfiguring their strategic global alliance to expand the distribution of Bertelsmann's leading media content and e-commerce properties over AOL's brands worldwide as well as to form an agreement to restructure interests in the AOL Europe and AOL Australia joint ventures. Under the four-year alliance, valued at $250 million, Bertelsmann will become a preferred provider of media content and e-commerce to AOL, with Bertelsmann's music, magazine, book and other entertainment properties, its book and music clubs, and its e-commerce sites featured throughout the network. Bertelsmann and AOL will cross-promote each other's brands across their services and properties, and Bertelsmann will provide broadband distribution for AOL and AOL Europe brands. AOL also agreed to buy out Bertelsmann's interests in AOL Europe and AOL Australia.

Copyright March 2000, Crain Communications Inc.

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