Time Warner to sell AOL France for $365m

22 Sep 2006
00:00

(Associated Press via NewsEdge) Time Warner said it agreed to sell AOL France's Internet access business to Neuf Cegetel, a French telecommunications network operator, for about $365 million in cash.

Under the agreement, Neuf Cegetel will acquire AOL's Internet access business in France, including its 500,000 broadband customers. The French company will also acquire its ASME operation, which manages AOL France's customer service operations.

The sale is part of AOL's efforts to shed its access subscription business as it focuses on boosting advertising revenue from its free Web sites.

Earlier this week, Time Warner said it reached an all-cash deal to sell AOL Germany's Internet access business to Telecom Italia SpA for about $870 million. Time Warner has said it wants to shed AOL's UK access business as well.

Starting in 2007, AOL will provide the content and manage online advertising sales for all of Neuf Cegetel's Internet portals. AOL and Neuf Cegetel will share advertising and other revenue from the sites.

The French version of AOL will continue to operate. Together, the two companies' sites attract about 9 million unique visitors per month, according to Time Warner.

At the end of 2006, AOL customers will have access to Neuf Cegetel services such as DSL TV and Wi-Fi phone service. The French company said it will focus on converting AOL dial-up subscribers to broadband.

© 2006 The Associated Press

© 2006 Dialog, a Thomson business. All rights reserved

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