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  DirectGroup: history

DirectGroup Bertelsmann was founded in July 2000, bringing together Bertelsmann's former Multimedia division with the club businesses of the book an music units. Cornerstones of the development of the business are presented below.

September 2007, Bertelsmann Reorganizes DirectGroup's Operations

Gütersloh, September 3, 2007 – The international media company Bertelsmann is charting the course for a reorganization of its direct-to-customer businesses, united in its Direct Group division. In his new capacity as CEO of Direct Group, Fernando Carro will supervise the division’s European and Asian operations, and report directly to Bertelsmann’s Chairman & CEO. The book, DVD and music club business Bertelsmann Direct North America, managed by Stuart Goldfarb, President and CEO, will now report to Bertelsmann Executive Board member Peter Olson, Chairman and CEO of Random House.

April 2007, DirectGroup Bertelsmann Acquires Time Inc.’s 50% Stake in Bookspan Partnership

DirectGroup Bertelsmann announced that it has purchased from Time Inc. its 50 percent share of Bookspan, which was established in 2000 as a partnership between the two companies.

June 2006, DirectGroup Bertelsmann to Acquire Largest Portuguese Bookstore Chain Bertrand

DirectGroup Bertelsmann is purposefully further strengthening its market position in the European book distribution business by acquiring Livraria Bertrand, the largest chain of bookstores in Portugal with 48 branches. Headquartered in Lisbon, the Bertrand Group generated revenues of more then EUR 40 million last year and employs a workforce of approximately 400. The main shareholder in the company was previously a group of investors from Luxemburg.

October 2005, DirectGroup acquires French bookselling chain Alsatia

DirectGroup expands its position in France. The French club France Loisirs acquires Alsatia Group - a bookselling chain with 22 stores.

May 2005, Liaoning Publishing Group and DirectGroup Bertelsmann Form Liaoning Bertelsmann Book Distribution Co., Ltd

The joint venture, which will do business as Liaoning Bertelsmann Book Distribution Co., Ltd, is the first book distribution company in the Chinese market co-founded with state-owned and foreign funds.

May 2005, DirectGroup Bertelsmann Acquires Largest Specialized Retailer of DVDs in the U.S.

Columbia House is the largest mail-order specialist in DVD movies in the US. The step brings together two powerful brands with complementary structures and business models. Merging the two companies allows for offering the members of both clubs a broader spectrum of products.

April 2005, DirectGroup Bertelsmann Acquires France’s Biggest Independent Bookselling Chain Privat

The move strengthens DirectGroup's position as # 2 book distributor in the French market.

September 2004, DirectGroup Bertelsmann Takes Over Market Leading Book Mail-Order in Ukraine

The Family Leisure Club was founded in the year 2000 as a mail-order company, reached breakeven within just three years.

December 2003, DirectGroup Bertelsmann Acquires Shares of 21st Century Book Chain to Build First Nationwide JV Book Chain in China

The new company rolls out book chains in mainland China based on the model of existing Bertelsmann Book Club Centers in Shanghai and Beijing.

July 2003, Barnes & Noble, Inc. acquires Bertelsmann's interest in Barnes&Noble.com

Selling the shares in Barnes & Noble.com is in line with DirectGroup’s strategy to exit all pure media e-commerce businesses and focus on the worldwide book and music clubs

September 2002, New Strategic Priorities: Focus on Club Businesses

DirectGroup decides to phased out its involvement with BOL in Germany/Switzerland, the Netherlands and Sweden.

August 2002, Ewald Walgenbach is appointed as DirectGroup's CEO

Ewald Walgenbach replaces Klaus Eierhoff, who leaves Bertelsmann.

April 2002, Sale of holdings in the Korean e-mail provider Daum, and clear strategic focus on the local club’s core competence.

December 2001, The Bertelsmann eCommerce Group (BeCG) and DirectGroup’s music ventures in the US are combined into BMB Direct.

December 2001, Acquisition of the Zooba.com e-mail marketing service in the US.

November 2001, As part of a restructuring process, Pixelpark AG is moved to the Arvato corporate division as a pure business-to-business venture.

July 2001, DirectGroup Bertelsmann becomes sole shareholder in the leading French book club, France Loisirs.

May 2001, Realignment of the direct-to-customer businesses: book clubs and BOL in Europe and Asia merge into an integrated multi-channel business.

February 2001, DirectGroup announces the bundling of its print and paper procurement processes for 15 book clubs in 13 European countries. In addition, specifications and formats for print products are standardized throughout Europe.

February 2001, Broadband Group moves to RTL

DirectGroup Bertelsmann and RTL Group jointly extend their broadband activities: to this end, Bertelsmann Broadband Group, previously part of Bertelsmann eCommerce Group, is taken over by RTL Group under corporate law, and is integrated in RTL New Media.

January 2001, DirectGroup swaps its holdings in the DealTime Europe joint venture for a share in the parent of its joint venture partner, DealTime Ltd, thereby becoming the biggest shareholder in DealTime Ltd.

December 2000, Launch of BOL in China.

July 2000, DirectGroup Bertelsmann founded.

The new corporate division unites the e-commerce ventures of the former Multimedia Division with Bertelsmann AG’s book and music division’s club ventures. Thus, DirectGroup represents a first-ever bundling of Bertelsmann AG’s major direct-to-customer businesses.



 
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