Orange buys Citydisc: Telecom and multimedia products combined
The telecommunications group Orange is acquiring the CD retailer Citydisc. By taking over the Citydisc stores and opening additional Orange Centers, Orange will double its store network from 47 to 80 locations by the end of 2009. A new store concept calls for integrating Citydisc’s multimedia product range with Orange’s telecommunications offerings.
The telecommunications group Orange is taking over the CD seller Citydisc. By taking over the Citydisc stores and opening additional Orange Centers, Orange will double its store network from 47 to 80 locations by the end of 2009, as the telecommunications provider announced on Monday. The two companies did not disclose the sale price.
Orange plans to implement a new store concept in 24 Citydisc outlets by summer 2009: The Citydisc multimedia range will be merged with the Orange Telekom offers. The stores will be called "Orange Citydisc". The 155 Citydisc employees can keep their jobs, both companies announced. Orange is also looking for around 60 new sales staff. The continued employment of Citydisc employees under Orange's working conditions has been agreed with the employee representatives and the communications union.
The concentration process in the Swiss telecoms sector is therefore continuing and the balance is shifting once again. Back in May, industry leader Swisscom took over the sales outlets and customer service of The Phone House, expanding its presence to over 170 stores throughout Switzerland. Competitor Sunrise, for its part, has opened a good dozen of its own sales outlets in recent months and currently offers its products in 52 stores. In the medium term, Sunrise aims to have 80 of its own stores.
The Swiss Federal Competition Commission (WeKo) is not expected to deal with the merger between Orange and Citydisc. The authority confirmed this to SDA on Monday. According to the law, mergers only have to be reported to the Competition Commission if at least two of the companies involved generate annual sales of over CHF 100 million in Switzerland. According to the company, Citydisc's turnover is below this mark.
Orange plans to implement a new store concept in 24 Citydisc outlets by summer 2009: The Citydisc multimedia range will be merged with the Orange Telekom offers. The stores will be called "Orange Citydisc". The 155 Citydisc employees can keep their jobs, both companies announced. Orange is also looking for around 60 new sales staff. The continued employment of Citydisc employees under Orange's working conditions has been agreed with the employee representatives and the communications union.
The concentration process in the Swiss telecoms sector is therefore continuing and the balance is shifting once again. Back in May, industry leader Swisscom took over the sales outlets and customer service of The Phone House, expanding its presence to over 170 stores throughout Switzerland. Competitor Sunrise, for its part, has opened a good dozen of its own sales outlets in recent months and currently offers its products in 52 stores. In the medium term, Sunrise aims to have 80 of its own stores.
The Swiss Federal Competition Commission (WeKo) is not expected to deal with the merger between Orange and Citydisc. The authority confirmed this to SDA on Monday. According to the law, mergers only have to be reported to the Competition Commission if at least two of the companies involved generate annual sales of over CHF 100 million in Switzerland. According to the company, Citydisc's turnover is below this mark.
