RealTime IT News

Icon Medialab's German Acquisition Fails

Swedish company Icon Medialab International AB revealed that its proposed deal to acquire German Net firm Kabel New Media GmbH is off.

Hamburg's Kabel New Media, one of Germany's leading multimedia firm with customers like Dresdner Bank, BMW and the ATP Tour, terminated the final discussions last week.

Several sources speculate that the deal was ended not because of money but rather because of cultural and ideological differences. Kabel New Media's identity would have probably disappeared into a growing Icon Medialab.

Icon Medialab's strategy is to aggressively acquire leading Net companies in different markets to reach critical mass faster than it can do on its own. Recently Icon Medialab expanded into England and Norway through acquisitions.

Peter Kabel, The founder and CEO at Kabel New Media, said that his company will continue to independently develop its strategic alignment and work to go public sometime in 1999.

Franco Fedeli, Icon Medialab's CEO, said that the company will be looking for a new partner in Germany, and he hopes to make a deal within months.