Bertelsmann Chairman Steps Down from AOL Board Amid Time Warner Takeover
Thomas Middelhoff, the chairman of Bertelsmann A.G., has announced his intention to step down from the board of America Online due to the proposed takeover of Time Warner. This move reflects the significant repercussions of the extraordinary deal on Bertelsmann, a joint venture partner with AOL in Europe and Australia. Despite this decision, Bertelsmann executives emphasize their desire to maintain their partnership with AOL and assure that Middelhoff had voted in favor of the Time Warner deal. The departure of Middelhoff is attributed to the conflicting roles he would have had to assume as a competitor on the AOL board.
Key Takeaways:
- Thomas Middelhoff will step down from the AOL board due to potential conflicts of interest resulting from the Time Warner takeover.
- Bertelsmann and AOL are equal partners in AOL Europe and an AOL network in Australia.
- Bertelsmann intends to maintain its partnership with AOL despite the Middelhoff's resignation.
- Bertelsmann has a 7/10 of 1 percent stake in America Online.
- The company competes with Time Warner in magazine publishing and music distribution, but they operate in different markets.
- Bertelsmann has been proactive in pushing into Internet services, with investments in Barnesandnoble.com and Bertelsmann Online.
- The company derives approximately 35 percent of its $13 billion in revenue from the United States.
- Despite its large size, Bertelsmann remains a closely held company controlled by the family of Reinhard Mohn.
Statistics:
- $13 billion: Bertelsmann's revenue
- 35 percent: Revenue derived from the United States
- 7/10 of 1 percent: Bertelsmann's stake in America Online
Sources:
- The New York Times (Chester Higgins Jr./Photographer)
- Bertelsmann A.G. Press Release