What AOL Gets
Sharper Focus
By trading its ANS Communications network business to WorldCom, AOL moves closer to becoming a pure media company, providing online content supported by advertising and E-commerce revenues.
More Subscribers
In return for ANS, WorldCom is handing over CompuServe's online service, which has 2.6 million subscribers. That brings AOL's total membership to 11.6 million--into mass-market range.
International Reach
AOL adds 850,000 CompuServe members in Europe on top of the 700,000 it already has. In addition, AOL picks up an additional 300,000 CompuServe members elsewhere in the world.
Cash
WorldCom also gives AOL $175 million in cash as partial payment for ANS, and Bertelsmann is giving AOL $75 million in cash for its half of CompuServe's European business.
Regulators' Attention
All this activity will attract the attention of the Justice Dept. It had already made inquiries while AOL, the No. 1 online company, was considering a bid for CompuServe, No. 3 in the U.S.
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