Deutsche Telekom Merges T-Online with Club Internet

Deutsche Telekom and
French media group Lagardère
Wednesday merged the two companies’ respective ISPs, T-Online and
Club Internet.

After the deal, Lagardère becomes the second largest shareholder of
T-Online International with 6.5 per cent of the authorized capital.

The two companies say they envisage international cooperation in content
and publicity, subject to existing contracts held separately by the
two companies.

“The partnership with Lagardère and Club Internet is a further
step by Deutsche Telekom on the way to becoming a European world market
provider,” said Dr. Ron Sommer, chairman of Deutsche Telekom.

Sommer said the French-German cooperation underlined Deutsche Telekom’s
commitment to a European online partnership.

Deutsche Telekom’s T-Online is Europe’s largest ISP with over 4.2 million
customers, while Club Internet is the second largest ISP in France with
more than 320,000 users.

Wolfgang Keuntje, director of T-Online, said the partnership with
Club Internet was an important step in T-Online’s international strategy,
following the start of T-Online Austria.

The merger brings benefits to both companies, especially to T-Online
which gains a strong position in the French market which is growing
at 60 per cent a year.

In return, Lagardère gains a new outlet for its content
at T-Online. The French company will be signing a portal management
contract for a three-year period.

The two companies also say they are looking into the possibility of
forming a joint venture investment company on a 50-50 basis to
develop and implement new Internet-based projects.

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