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'Bertelsmann AG' is a transnational media corporation founded in 1835, based in Gütersloh, Germany. The company operates in 63 countries and employs over 88,000 workers. In 2004 the company reported a € 17 billion revenue.

Contents

Businesses

Subsidiaries

Ownership

History

References

See also

External links

Businesses

Subsidiaries

Bertelsmann consists of 6 corporate divisions:

★ RTL Group, a European broadcaster

★ Gruner + Jahr (a magazine publisher, the biggest in Europe and second biggest world wide)

★ BMG (Bertelsmann Music Group)

★ Random House, the world's largest trade book publisher (popular literature)

★ Direct Group, the world's largest book and music club group

★ arvato, an international media service provider and editing house
In August 2004, BMG and Sony entered a 50-50 joint venture, reducing the Big Five of music companies to the Big Four. BMG Music Publishing, the world's third largest music publisher, stayed wholly owned by Bertelsmann and became the world's largest independent music publisher. As of 2005, Sony BMG's share of the music market stands at 21.5%.
Bertelsmann made headlines on May 17, 2002, when it announced it would acquire the assets of Napster for $8 million. Bertelsman first established a relationship with Napster in the fall of 2000 when it formed an alliance with them to develop a secure file-sharing music service. With the alliance Bertelsmann separated itself from the other major labels who saw Napster's closure as the only option.^[1]

Ownership

Bertelsmann itself is not publicly listed, and is majority owned (76.9%) by the Bertelsmann Foundation, a non-profit organisation and political think tank set up by the founding families Bertelsmann and Mohn.^[2] The remaining 23.1% is owned by the Mohn Family.
Albert Frère, a belgian industrial, owned 25% of the Bertelsmann until 2006.

History

The ''C. Bertelsmann Verlag'' was founded as a print shop cum publishing house in July, 1835 by Carl Bertelsmann. At first Bertelsmann concentrated on Christian songs and books. In 1851 led by Carl Bertelsmann's son, Heinrich, the publishing programme was extended into the area of novels. During the following years Bertelsmann expanded steadily. By 1939 the publishing house employed 401 people.
In 2002 Bertelsmann admitted that they lied about their involvement with Adolf Hitler and the Nazi party which included making huge profits from Jewish slave labour and publishing propaganda aimed at harming European Jews. The revelations came to light during their takeover of US book publisher Random House in 1998, Bertelsmann used a revised account of their Nazi past to smooth the deal. [1]
After World War II, in which the publishing house was closed for some time, but nevertheless published books by Nazi authors like Will Vesper (who did the commemorative speech at the 1933 book burning) or Hans Grimm, the company was re-founded by Reinhard Mohn, fifth generation of the Bertelsmann family. In the 1950s, Bertelsmann expanded with the ''Bertelsmann Leserring'' (readers ring) and the founding of the LP label ''Ariola Records'' in 1958, which marks the entry in the music market. In 1964 Bertelsmann bought the ''Ufa Filmproduktionsgesellschaft'' as entry in the movie market. Ufa was sold in the 1970s. In 1969, Bertelsmann bought into the Gruner und Jahr publishing house (newspapers, magazines), in 1973 becoming majority owner.
Since the 1980s, Bertelsmann has expanded internationally: in 1979 it bought the American Arista label, in 1980 Bantam Books, in 1986 the label RCA Victor and the publishing house Doubleday. It has distributed Windham Hill Records since 1989. In 1992 it acquired 50% of Windham Hill Records and in 1996 it took full control.
During this period the activities in the music market were bundled into the label BMG.
In 1993, Reinhard Mohn as owner of Bertelsmann moved 68.8% of his Bertelsmann AG stock over to the Bertelsmann Foundation. As of 2006, the Mohn family still owns 74.9 of Bertelsman's capital, in addition of the Bertelsmann foundation.
From 1995 to 2000 Bertelsmann had a major Internet Service Provider (and associated content) joint venture with AOL that operated throughout Europe.
In 1995 the ''Ufa Film- und Fernseh-GmbH'' merged with CLT, Luxembourg. The result was known as RTL Group, the biggest private radio and TV broadcaster in Europe.
In 1998 Thomas Middelhoff become CEO of Bertelsmann. He bought the Random House publishing house and concentrated book publishing in the USA under this label.
in 1999, Bertelsmann launched bol.com, the internet book retailer.
In February 2001, Groupe Bruxelles Lambert purchased 25% of Bertelsmann AG. André Desmarais, President and Chief Executive Officer, Power Corporation of Canada, was named to the Board. In July 2002, the president Thomas Middelhoff goes away, because of disagreements concerning the company's strategy, in particular relating to its introduction in the ''Deutsche Börse''.
2003, the new CEO Gunter Thielen expanded the music branch BMG with the buying of Zomba Records.
In 2004, BMG set up a joint-venture with Sony Music to create Sony BMG. BMG Music Publishing remained wholly owned by Bertelsmann.
Also in 2004, the London Borough of Camden, England brought anti-social behaviour orders (ASBOs) against Sony Music UK and BMG for alleged fly posting. Illegal fly posting by the two companies is thought to save them £8 million a year in advertising costs in Camden and cost the Borough £250,000 to clean up. Falling to comply with an ASBO can result in a jail sentence of up to 5 years.
As of Sept. 1, 2007, Bertelsmann agreed to pay music publishers $130 million to settle a copyright infringement lawsuit brought on by its deal with Napster.^[3]

References

1. Richard Menta, Bertelsmann Beds Napster - MP3 Newswire
2. Bertelsmann names new CEO - Reuters news service, via CNN Money, Friday January 19 2007
3. http://www.hollywoodreporter.com/hr/content_display/news/e3iae9b905a4fb73c7e19dde70db95c408e

See also

★ Bertelsmann Foundation, a German foundation created by the Bertelsman and Mohn families

★ List of assets owned by Bertelsmann

★ Media concentration

External links

★ Official site

★ Official Jobs & Careers site

★ Ketupa - Bertelsmann extensive profile

★ arvato

★ /Random House web site

★ /Random house Careers web site

★ RTL Group

★ Sony BMG