German media giant Bertelsmann has agreed to sell its 50 per cent stake in AOL Europe to joint venture partner America Online (AOL).

Bertelsmann said the transaction would cost $6.75 to $8.25 billion (€6.97 to €8.52 billion), which AOL could pay in cash or shares after January 31st, 2002.

At the same time, the two companies had agreed to a strategic partnership, Bertelsmann said. This would mean that Bertelsmann would remain AOL's "preferred global partner" for content and e-commerce for years to come.