MILAN (AFX) - Telecom Italia SPA confirmed late Sunday it has agreed to buy AOL Germany's internet access business for 675 million euros ($852.7 million).
In a joint statement, Telecom Italia and Time Warner Inc., the parent company of AOL, said they expect to close the transaction in four to six months, after receiving all the necessary authorizations.
AOL will provide co-branded audience services for Telecom Italia's internet access subscribers in Germany, the companies said in the statement.
Telecom Italia said in the statement that it is moving to consolidate its presence in Germany, which started with the acquisition of Hansenet in 2003.
Telecom Italia will be the second largest broadband provider in Germany with more than 3.2 million total subscribers, including nearly 2 million broadband customers.
Telecom Italia Chief Executive Riccardo Ruggiero said in the statement that 'the acquisition marks a further step in Telecom Italia's strategy of focusing on broadband services and content delivery at an international level.'
Time Warner Chairman Dick Parsons said the sale of AOL Germany 'marks the latest step in Time Warner's strategy of focusing on the company core assets.'
AOL will be responsible for all online advertising sales for the co-branded audience service. Financial terms of the audience services partnership weren't disclosed.
Italy's biggest telecommunications operator by market value said Monday it plans to split its mobile and fixed-line assets into separate entities. Telecom Italia Chairman Marco Tronchetti Provera astonished investors on Friday evening by announcing he was quitting his job after a week-long argument with Prime Minister Romano Prodi over the company's future strategy.
Telecom Italia's board named Guido Rossi as new Chairman of the company.
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