Bertelsmann, Daimler Join On Net
Daimler-Benz Interservices AG unit Debis Systemhaus GmbH plans to take a 50 per cent stake in Bertelsmann unit MediaWays, the company that built a national dial-up network for the AOL venture of Bertelsmann and America Online.
The companies will invest around DM 250 million ($165.2 million) in MediaWays over the next four years. Company officials declined to give financial details of the deal or to say when MediaWays would be profitable.
Networks are the electronic printing presses of the future, said Thomas Middelhoff, Bertelsmann board member.
With its broad experience in information technology, Debis is the ideal partner for us to offer innovative network solutions in Germany and later on the European market.
MediaWays will compete with telecommunications and internet service providers to offer network services, particularly for Intranets, or internal corporate communications networks based on Internet technology. It expects turnover of DM 40 million this year and DM 150 million by 2000.
Although these sums are modest compared to the multi-billion dollar businesses of each company, Intranets are booming and corporate investment in Intranet technology has will soon surpass investment in the public Internet.
The joint venture would combine the technical know-how of Daimler's services division with the Bertelsmann's media competence, said Debis chairman Klaus Mangold. A new world and huge market for new services is opening in the area of media and telecommunications, he said.
MediaWays manager Bernhard Ribbrock said the company would address media firms, companies with sales forces out in the field, companies that want to link their branches and those that generally want an online connection to customers.
We can offer clear savings and flexible service with a connection to the MediaWays network, he said.
MediaWays built the national dial-up network for the AOL venture between Bertelsmann and America Online, which now has 60 points-of-presence and will be expanded to 90 over the next few months.
The European AOL computer service has more than 200,000 subscribers, with two thirds of the total in Germany alone.
Because most of AOL subscribers dial into the service in the evening, the network is largely unused during normal business hours.
In Bertelsmann's broader Internet business, MediaWays is the network solutions provider, while its Telemedia GmbH group provides more consulting and content-oriented services for developing corporate Intranets.
Debis provides financial and trading services and its Debitel unit is Germany largest wireless reseller. It also holds 24.4 per cent of French software group Cap Gemini.