Bertelsmann AG’s US on-line network partner turns out to be America Online Inc, the German media giant announced in Frankfurt yesterday. Bertelsmann will pay $50m for a 5% stake in the Reston, Virginia company and has an option to go to 10%. The two will set up an equally-owned European on-line network joint venture – and they are inviting would-be European partners – at least one from each country – to take small stakes that in aggregate will not total more than 10%. The target is 1m subscribers and $685m annual turnover by 2000. Bertelsmann will invest $100m in the joint venture, and the first services will be launched in Germany, France and the UK. The German makes no secret of the fact that the aim is pre-empt the Microsoft Network – We can’t leave the future to Microsoft alone. Bertelsmann and America Online will compete with Microsoft worldwide, board member Thomas Middelhoff declared. It is talking to both Deutsche Telekom and France Telecom on co-operation with their respective on-li ne services, Telekom Online and Minitel. The new service is planned to open for business in six weeks in Frankfurt.
