The Bookseller.com

2nd December 2008

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Bertelsmann could sell book clubs

10.12.07

Bertelsmann is considering the sale of its book, DVD and music clubs in countries outside its home market of Germany as the media group’s new chief executive tries to focus the company on faster-growing markets, reports the FT.

The first signals that Hartmut Ostrowski will have little patience with the sluggish direct-to-customer business of Europe’s largest media company could come on Thursday, when he appears in front of 600 group executives in Berlin.

Discussion about Direct Group’s future flared in September when its head, Ewald Walgenbach, who had seen himself as a contender to become chief executive, announced his departure and the unit was split. Bertelsmann would not comment, but three people familiar with the business said falling profits and the possibility of having to write down the value of recent US acquisitions had led to debate about a sale of parts of these units. Executives are debating whether to sell book club businesses elsewhere, although the German business has been ring-fenced.  

FT

Bertelsmann BCA