Connect with us

Hi, what are you looking for?

Jewish Business News

Politics

Orange Redoes Brand Licensing Agreement With Partner Costs Up To $100 Million If it Leaves Israel

orange-ceo-stephane-richard

Following the political storm generated by Orange CEO Stéphane Richard‘s comments in Egypt supporting a boycott of Israel (“I wish I could dump Israel tomorrow, ” he said), Orange has signed a new two year agreement with Israeli company Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), which licenses the brand name in that country.

After Richard’s subsequent retraction of his words and visit to Israel to smooth things over, Partner has announced an agreement with Orange which creates a new framework for their relationship.

The new agreement stipulates that Orange will pay up to $100 million to Partner, a sizable chunk of which will be used to help Partner rebrand itself in the wake of Orange’s departure.

Pierre Louette, Orange’s deputy CEO, told AFP: “The discussions were pragmatic, conducted in a positive atmosphere, and the two parties reached a mutually satisfactory agreement, ”

Globes report says that the two companies will use a detailed market study to assess Partner’s position within the dynamics of the Israeli telecommunications services marketplace.
The agreement provides both Partner and Orange the right to terminate the current Orange brand license agreement. If Partner does not exercise its right to terminate within 12 months, either Partner or Orange may terminate the agreement during the following 12 months, according to Globes.

In addition, says Globes: the agreement provides for total payments of €40 million to Partner from signing the agreement until completion of the market study, and an additional €50 million should the brand license agreement be terminated within 24 months. Amounts paid to Partner will be made over eight quarters against marketing, sales, customer services and related expenses.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Newsletter

Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

empty

The contract signed between the Israeli government and Pfizer shows clearly and unequivocally that this is a clinical study on humans - The agreement...

Travel

After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.

Advertisement
cialis cialis satış