Bertelsmann and iSyndicate to Form European Joint Venture

Posted on September 25, 2000

Bertelsmann and iSyndicate have announced the agreement of a European joint venture that will provide content syndication services and technology to media properties throughout Europe. The joint venture will combine Bertelsmann's media network with iSyndicate's syndication services and relationships with content providers.

Each partner will hold a 50 percent stake in the joint venture enterprise operating as ``iSyndicate Europe''. The company's headquarters will be located in Hamburg, Germany with iSyndicate's existing London office serving as the first affiliate office. Bertelsmann has the right to appoint the CEO of iSyndicate Europe. Under the terms of the agreement, Bertelsmann will acquire a four percent stake in US-based parent company iSyndicate Inc. Bertelsmann's Chief Creative Officer Rolf Schmidt-Holtz will also join iSyndicate's board. iSyndicate's other strategic partnerships include NBC, Microsoft, NewsCorp, InfoSpace and Vignette.

Bertelsmann's entry into the syndication business will be assumed by the new Bertelsmann Content Network Division under the direction of Rolf Schmidt-Holtz. Schmidt-Holtz stated: ``Bertelsmann is a content-powerhouse. The joint venture is an important step toward strengthening our position in the content sector. We want to ensure that Bertelsmann's diverse content is available wherever the customer wishes and expects to find it. Syndication represents a huge opportunity, because the market is growing extremely fast. In iSyndicate, we have found the ideal partner to establish the syndication business throughout the whole of Europe. It will be a system open to all content providers who have been invited to put their content to work through this platform.''

Joel Maske, co-founder, President and CEO of iSyndicate and Chairman of the newly created iSyndicate Europe, commented: ``Now that the European market for content syndication is poised for growth, iSyndicate wanted a strategic partnership with a significant media player. Bertelsmann is an ideal partner for us to go into Europe with, as the company is synonymous with media content and together we will deliver solutions to build the syndication market.''