DirectGroup Bertelsmann Acquires Time Inc.'S 50% Stake in Bookspan Partnership
NEW YORK--DirectGroup Bertelsmann, the global direct-to-consumer division of Bertelsmann AG, announced today 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. Bookspan owns and operates 40 book clubs in the United States, including Doubleday Book Club, Literary Guild, Book-of-the-Month Club and special interest and lifestyle clubs. Terms of the transaction were not announced.
Bookspan will be integrated into BMG Columbia House, an operating unit of DirectGroup that markets music and DVDs direct to consumers in the United States and Canada through such market-leading brands as BMG Music Service and Columbia House DVD Club. Stuart Goldfarb, President and CEO of BMG Columbia House, will lead the combined entity which will be the largest direct-to-consumer distributor of media products in the U.S.
"This investment underscores our belief that direct marketing is a distribution channel with great potential for future growth because it meets consumers' desires for selection, service and value," said Ewald Walgenbach, Chief Executive Officer of DirectGroup Bertelsmann. "Combining Bookspan's book clubs with our successfully integrated music and DVD club business follows our proven strategy of creating new growth opportunities and operational efficiencies through the combination of complementary businesses."
"This transaction reinforces Time Inc.'s commitment to the brands and projects that will be central to our long-term success," said Ann Moore, Chairman and Chief Executive Officer of Time Inc. "Bookspan is a good strategic fit for Bertelsmann and the synergies between Bookspan and DirectGroup's music and DVD club operations will benefit Bookspan, its customers and its suppliers."
"Reaching consumers directly is recognized as essential to success in today's changing marketplace," said Stuart Goldfarb. "Our long history of direct-to-consumer expertise together with this investment will enable us to offer millions of members an even wider range of products. Combining such popular and respected brands as Doubleday Book Club, Book of the Month Club, Mystery Guild and Black Expressions with our existing music and DVD businesses creates exciting growth opportunities."
The combined business will serve more than 20 million members in the U.S. through its various club catalogs and online and have offices in New York, Pennsylvania, Indiana, South Carolina and Toronto, Canada.
About Bookspan
Bookspan is a partnership between Bertelsmann AG and Time Inc. with two wholly-owned subsidiaries; Doubleday Entertainment(TM) and YES Solutions(TM). Doubleday Entertainment has nearly 8 million members and includes almost 40 book clubs, such as Doubleday Book Club, Literary Guild, Book-of-the-Month Club and special interest and lifestyle clubs. YES Solutions provides operational and creative services to multi-channel direct marketers, national retailers and B2B enterprises.
About BMG Columbia House
BMG Columbia House, Inc. is the largest direct-to-consumer distributor of music and movies in the U.S. The company's brands include BMG Music Service, Columbia House, yourmusic.com and CDNow. BMG Music Service is the leading direct-to-consumer distributor of CDs and offers over 14,000 titles provided by the four major music groups and over 100 independent record labels to its members. Columbia House is the largest direct marketer of DVDs in the United States and Canada with over 9,500 titles from which to choose provided by most of the major motion picture studios. BMG Columbia House, Inc. reaches millions of music and movie fans via club catalogs and online (www.bmgmusic.com and www.columbiahouse.com). Based in New York City, the company has locations in Indianapolis and Terre Haute, Indiana, Duncan, South Carolina and Toronto, Canada, and is part of DirectGroup Bertelsmann.
About DirectGroup Bertelsmann
DirectGroup Bertelsmann integrates Bertelsmann's global media direct-to-consumer businesses. Roughly 35 million consumer relationships secure DirectGroup's position among the largest enterprises in media commerce. The cornerstone of this success are the book and music clubs in 24 countries incorporating strong brands like France Loisirs, Book-of-the-Month, Der Club, Circulo de Lectores and BMG Music Service. Members have access to the clubs' product range via catalogs, internet or one of the more than 600 worldwide club shops. Since August 2002, Ewald Walgenbach has headed the unit. DirectGroup Bertelsmann is a division of German-based Bertelsmann AG. In fiscal year 2006, Direct Group made 2.7 billion euros in revenues with more than 13,000 employees.
About Time Inc.
Time Inc., a Time Warner company, is one of the largest content companies in the world. With approximately 130 magazines, it is the largest magazine publisher in the U.S. and U.K. Each month, one of out every two American adults reads a Time Inc. magazine, and one out of every 10 visits a company website (more than 19 million unique visitors). Time Inc.'s popular brands and successful franchises extend to online, television, cable VOD, satellite radio, mobile devices, events and branded products.
Contacts
BMG Columbia House/DirectGroup
Paula Batson, 212-930-4531
paula.batson@bmgch.com
or
Bookspan
Sue R.E. Geramian, 212-651-7215
sue.geramian@bookspan.com
or
Time Inc.
Dawn Bridges, 212-522-2494
dawn_bridges@timeinc.com
Bookspan will be integrated into BMG Columbia House, an operating unit of DirectGroup that markets music and DVDs direct to consumers in the United States and Canada through such market-leading brands as BMG Music Service and Columbia House DVD Club. Stuart Goldfarb, President and CEO of BMG Columbia House, will lead the combined entity which will be the largest direct-to-consumer distributor of media products in the U.S.
"This investment underscores our belief that direct marketing is a distribution channel with great potential for future growth because it meets consumers' desires for selection, service and value," said Ewald Walgenbach, Chief Executive Officer of DirectGroup Bertelsmann. "Combining Bookspan's book clubs with our successfully integrated music and DVD club business follows our proven strategy of creating new growth opportunities and operational efficiencies through the combination of complementary businesses."
"This transaction reinforces Time Inc.'s commitment to the brands and projects that will be central to our long-term success," said Ann Moore, Chairman and Chief Executive Officer of Time Inc. "Bookspan is a good strategic fit for Bertelsmann and the synergies between Bookspan and DirectGroup's music and DVD club operations will benefit Bookspan, its customers and its suppliers."
"Reaching consumers directly is recognized as essential to success in today's changing marketplace," said Stuart Goldfarb. "Our long history of direct-to-consumer expertise together with this investment will enable us to offer millions of members an even wider range of products. Combining such popular and respected brands as Doubleday Book Club, Book of the Month Club, Mystery Guild and Black Expressions with our existing music and DVD businesses creates exciting growth opportunities."
The combined business will serve more than 20 million members in the U.S. through its various club catalogs and online and have offices in New York, Pennsylvania, Indiana, South Carolina and Toronto, Canada.
About Bookspan
Bookspan is a partnership between Bertelsmann AG and Time Inc. with two wholly-owned subsidiaries; Doubleday Entertainment(TM) and YES Solutions(TM). Doubleday Entertainment has nearly 8 million members and includes almost 40 book clubs, such as Doubleday Book Club, Literary Guild, Book-of-the-Month Club and special interest and lifestyle clubs. YES Solutions provides operational and creative services to multi-channel direct marketers, national retailers and B2B enterprises.
About BMG Columbia House
BMG Columbia House, Inc. is the largest direct-to-consumer distributor of music and movies in the U.S. The company's brands include BMG Music Service, Columbia House, yourmusic.com and CDNow. BMG Music Service is the leading direct-to-consumer distributor of CDs and offers over 14,000 titles provided by the four major music groups and over 100 independent record labels to its members. Columbia House is the largest direct marketer of DVDs in the United States and Canada with over 9,500 titles from which to choose provided by most of the major motion picture studios. BMG Columbia House, Inc. reaches millions of music and movie fans via club catalogs and online (www.bmgmusic.com and www.columbiahouse.com). Based in New York City, the company has locations in Indianapolis and Terre Haute, Indiana, Duncan, South Carolina and Toronto, Canada, and is part of DirectGroup Bertelsmann.
About DirectGroup Bertelsmann
DirectGroup Bertelsmann integrates Bertelsmann's global media direct-to-consumer businesses. Roughly 35 million consumer relationships secure DirectGroup's position among the largest enterprises in media commerce. The cornerstone of this success are the book and music clubs in 24 countries incorporating strong brands like France Loisirs, Book-of-the-Month, Der Club, Circulo de Lectores and BMG Music Service. Members have access to the clubs' product range via catalogs, internet or one of the more than 600 worldwide club shops. Since August 2002, Ewald Walgenbach has headed the unit. DirectGroup Bertelsmann is a division of German-based Bertelsmann AG. In fiscal year 2006, Direct Group made 2.7 billion euros in revenues with more than 13,000 employees.
About Time Inc.
Time Inc., a Time Warner company, is one of the largest content companies in the world. With approximately 130 magazines, it is the largest magazine publisher in the U.S. and U.K. Each month, one of out every two American adults reads a Time Inc. magazine, and one out of every 10 visits a company website (more than 19 million unique visitors). Time Inc.'s popular brands and successful franchises extend to online, television, cable VOD, satellite radio, mobile devices, events and branded products.
Contacts
BMG Columbia House/DirectGroup
Paula Batson, 212-930-4531
paula.batson@bmgch.com
or
Bookspan
Sue R.E. Geramian, 212-651-7215
sue.geramian@bookspan.com
or
Time Inc.
Dawn Bridges, 212-522-2494
dawn_bridges@timeinc.com
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