Now Bertelsmann may be getting out of the book, CD & DVD club businesses

"We are examining all strategic options, including a possible sale" - Hartmut Ostrowski, CEO Bertelsmann AG By SDH For months we have been trying to understand the way the suits at German media giant Bertelsmann AG think. Back in 2007 they axed dozens and dozens of jobs in their book club business. Then they took it and rolled it into their CD and DVD club, Columbia House. Then they took that and rolled it into their book publishing unit Random House. Well like we said before, Bertelsmann is still trying to figure out what to do with their book business, and perhaps Bertelsmann on a whole. Stung by write-downs from its book and music clubs, Bertelsmann AG on Tuesday reported a sharp decline in 2007 profit and said it was considering all options for its struggling Direct Group, an acknowledgment that the popularity of digital media has dented demand for CDs and books. If Bertie does decide to put these businesses on the block, we are almost certain a private investment group will walk away with it. But what will Bertie do after the sale? They still have their 50% stake in music giant Sony BMG which they seem to want to hold on to. Bertie clearly has a thing for the music business because it was just late last year that it was announced that they planned to launch a new music publishing business just months after selling the one they already had. Wait but didn't word circulate that they were thinking about getting out of the music business? Bertie we told you some steps you need to take. Sure sell the book, CD & DVD club businesses if it’s not working for you. But Ostrowski must think long and hard about where he wants to take the company and do so smartly. We still think a social network for book worms under the Bookspan.com brand would be a nice shot at becoming a player on the web. But you know it’s just a thought.