View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
November 10, 1997updated 03 Sep 2016 7:01pm

AOL-COMPUSERVE DEAL CLEARS ANTITRUST HURDLE

By CBR Staff Writer

America Online Inc’s three-way deal with WorldCom Inc to acquire the 2.6 million subscribers base of CompuServe Corp (CI No 3,242) has received anti-trust clearance from the Department of Justice. The DOJ has informed AOL that it is allowing the statutory waiting period required for the transaction to expire without seeking additional information. The deal faced an anti-trust probe from the DOJ and New York State, which were concerned with whether it left AOL with the ability to unilaterally raise prices to consumers and whether WorldCom would have an unfair advantage among businesses supplying network service to online service providers (CI No 3,243). The terms of the proposed transaction will see H&R Block Inc sell the CompuServe online service to WorldCom, which will keep the network service infrastructure and pass on the Interactive Services Division and $175m in cash to AOL in exchange for AOL’s network business, ANS Communications. Now that the anti-trust concerns are out of the way, the closing of the deal is still subject to completion of foreign regulatory review and the approval of CompuServe shareholders. AOL expects final closing during the first calendar quarter of 1998.

Content from our partners
Rethinking cloud: challenging assumptions, learning lessons
DTX Manchester welcomes leading tech talent from across the region and beyond
The hidden complexities of deploying AI in your business

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU