At Time Warner, business as usual, and thats not a good thing

-RYAN Its easy to lay some of the blame for the trouble many companies are facing these days on the current economic climate . The media industry has been hit hard and some of the media industry's top guns are having to make drastic decisions to keep their heads above the rising water. Sumner Redstone, was forced to sell off shares of his companies and there is still talk that he may unload CBS to save Viacom. One of the companies suffering even more now is Time Warner, and we won't let Time Warner CEO Jeff Bewkes use the economy as a fucking crutch. However, we have to be fair and throw the blame as far back as on the lap of then CEO Dick Parsons. Mr. Parsons, credited with reducing the company's debt after the value killing merger with AOL, has only that under his belt and knowing about wine. Parsons was hell bent on the outdated notion that bigger is better and never made any real moves to put Time Warner on a diet. When time came for him to hand over the keys to his number two Jeff Bewkes, many waited, anxiously for change believing Bewkes would come in and shake things up instantly. But Bewkes is approaching his one year anniversary as CEO and he hasn't done anything worth writing about. Whats worth writing about is what he hasn't done. Bewkes like Parsons for some reason, is hesitant to pull the trigger on a major restructuring that is way overdue at Time Warner. The company is obese and needs to lose weight fast. Earlier when he took office there was talk that there was interest to sell or spin off AOL but Bewkes put that to bed during an interview. When Bewkes was taking control at Time Warner back on January 1st, there was another man by the name of Hartmut Ostrowski taking control overseas at then German media giant Bertelsmann AG. Like Bewkes, Hartmut Ostrowski was taking over a major media company promising major changes to firm up their companies. Well, Ostrowski delivered on his promise for the most part. In no time the new CEO sold off businesses (50% stake in Sony-BMG) that no longer fit within his vision for the company, laid off thousands and is still looking to cut where he can. We can't really come up with anything that Bewkes has done to help set Time Warner on a new path. Wait....Oh yeah he folded New Line into the bigger Warner Bros. Studios, and announced plans to sell off AOL's stone age dial up business. Its as if Bewkes is afraid to take the heat if changes he probably does want to implement, fails. Time Inc is still going through an identity crisis and among other ailments, AOL is still a tumor that seems to get worst every quarter. Some will argue 10 months on the job isn't long enough to whip the overweight adult that is Time Warner into shape. OK that may have some truth to it, but we think 10 months is enough to at least set the company on a new path to new success.

Under Hart Ostrowski, a more servicey Bertelsmann?

New Bertelsmann CEO Hartmut "Hart" Ostrowski and the Mohn Family may not have the stomach to take on the current challenges the media industry faces By SDH New Bertelsmann CEO Hart Ostrowski was the man who ran Bertelsmann’s services business Arvato. Known for going behind the backs of his bosses to secure deals that later turned out to be profitable Hart was and still is a shining star in the Bertelsmann stable of executives. Even way back in 1992 when Bertelsmann was ruled by then CEO Mark Woessner, the company wasn’t sure what business it wanted to be in. Mark Woessner had to remind Ostrowski that Bertelsmann wasn’t a services company it was a media company. Fast-forward to the present, and what we find is Bertelsmann trapped in between two identities, services and media. In a feature article about Ostrowski on FinancialExpress.com, he is painted as strictly services executive that may be looking to transform Germany’s biggest media company into a services business. It’s easy to jump to the conclusion that Ostrowski is taking the easy way out by focusing on the business he knows how to deliver on. It’s also easy to jump to the conclusion that Ostrowski is afraid to take on the current challenges the media industry faces like the internet, and is opting to focus on what he knows to shine bright for the Mohn Family. However if this is the case, this may not be just Ostrowski’s plan. Was his promotion from CEO of Bertelsmann services business Arvato to Bertelsmann CEO a sign that the Mohn Family wants out of the exhausted media business? Well one can jump to that conclusion as well. In the last couple of months published reports have serviced about the company wanting to get out of the music business by unloading it’s 50% stake in Sony BMG. Then just a few weeks ago Ostrowski said that the company was looking at all options regarding its book and CD club businesses including a possible sale. If Bertelsmann were to sell off these assets, the company will only be left with a finger in the media business via its RTL division. Such events would strip Bertelsmann of its media power status and Germany of its biggest media company.

Germany's Bertelsmann looking to take on China not America

By SDH German media giant Bertelsmann may be getting out of America if and when they sell off their book businesses and their 50% stake in Sony BMG. But they are getting into China even more. The company via its pan-European TV division RTL Group, has acquired a 16.5% stake in production group-ad agency Ad Society But the purchase seemed to have been approved after RTL issued public apologies through it's German channels and its news web N-TV for misrepresentations of the unrest in Tibet and Nepal. Bertie really has no love for America huh! Bertelsmann has long been exploring the Chinese market and in 2005 inked a joint venture with the Liaoning Publishing Group to launch Bertelsmann China Direct Group to sell books in the country.

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.

Bertelsmann AG needs to take on America

BY SDH There are the known media giants and there the known unknown media giants. Germany's Bertelsmann AG (Bertie) that country's biggest falls into the known unknown bucket. For years the company has stuck to what it knows, books, tv, movies and music, but those areas are somewhat exhausted especially the music business and Bertie, whether they want to admit it or not, needs a jolt. No one outside of Bertie knows the company’s exact financial state because the company is privately held, reclusive and secretive much like that country……. Oh yeah North Korea. Bertie doesn’t seem interested in opening up and embracing the rest of the media world face to face outside of Europe. Just like Korea or any other reclusive country anyone who attempts to change that, is terminated. Thomas Middelhoff was canned for trying to bring Bertie into the current times. Now the company is under the hand picked leadership of new CEO Hartmut “we call him Hart” Ostrowski and even though the company is private, many await any changes the new man in charge may be planning. Bertie desperately needs to do more here in America. Sure they have book and marketing businesses here as well as their 50% in Sony BMG, but that’s not enough. Bertelsmann needs to make a big splash in America, and they can do so by buying their way in. By this we mean Ostrowski should sniff out possible acquisitions in traditional and/or digital media. Bertie compared to its U.S. counterparts has no significant digital media holdings if any, so this is perhaps were Ostrowski should focus. Bertie has some content, all they need is a foundation to build on. With some major U.S. media companies looking to shed some weight, this could be a great opportunity for Bertie to pick up what those media companies drop and make it their own. One cool idea would be for Bertie to transform the Bookspan brand into an online social network for book worms.

German media giant Bertelsmann AG wants out of the music business?

BY SDH The word around Germany is that Bertelsmann AG is looking to exit the music business via a sale of its 50% stake in Sony BMG something we said they should seriously look into doing. If this is indeed in the works then we have to applaud new Bertelsmann CEO Hart Ostrowski for making what could be his first right move since taking office. Bertelsmann is the only major media company still attached to a major music group. Time Warner saw the writing on the wall some years back and sold its music division (Warner Music Group) to a private equity firm who took the company public. The company's stock has since been struggling to survive. The music industry is faced with numerous problems that will only bring down a big media parent company when earnings report time comes around. Bertelsmann should be able to pocket a nice chunk of cash from a sale of its 50% stake in Sony BMG and perhaps invest their take in building up their internet and digital media business. Well there goes any shot at seeing Hart Ostrowski escorting Sony BMG artist Beyonce to a major music event. We just hope they don't sell their 50% stake and then a year later announce plans to invest millions into launching a new record company. No more flip flopping!

And now this morning's worthy media business news...

We totally forgot that Vivendi even existed. After dropping the Universal from the corporate name we pretty much forgot about them. Anyway they are trying to invade Bertelsmann's turf by trying to land a stake in Germany's largest pay-tv broadcaster Premiere. [Reuters] The bids are in for U.S. government owned airwaves. So far the FCC has received $2.78 billion in bids. Companies that are expected to be in on the bids include AT&T and Google. [Reuters] Don Imus in hot water again [AP] We knew Rupert Murdoch couldn't say no to money. Why kill something that has been generating revenue for years. Or is this Rupe's way of showing he won't have a hand in the WSJ [NYT] Interview Magazine, Interviewed and hired [NYT]

Looking Back: Bertelsmann will never see another CEO like Thomas Middelhoff

-BY SDH Thomas Middelhoff, the former CEO of German media giant Bertelsmann AG was a German media exec with the makings of a U.S. media exec. He spent more time here in the U.S. than probably any other Bertie CEO has or will. He rubbed elbows with Hollywood trying to bring Bertie into the U.S. spotlight. However in the long run, Middelhoff was too out in the open and to ambitious to transform the company into a major digital player which every media company is trying to do now. Middelhoff was ahead of the game but like we said, got cut short by a reclusive, controlling family and a board of directors that just didn't get it, and to this day still doesn't get it. You can't be the CEO of a foreign media company and not work the elite circles in the media superpower that is America. We came across a Businessweek cover story on Thomas Middelhoff, and it reads like it would read if it was a story on Les Moonves, Bob Iger or even Phil Dauman. The Gulfstream Jet, the high profile events, Thomas Middelhoff wanted to bring Bertie out of the dark that it still sits in but, apparently the Mohn family likes to keep it in the dark. Don't get us wrong, Thomas Middelhoff like many other media CEOs made his blunders as well and is in no way perfect. But you have to wonder where would Bertie be today if he was allowed to take the company public and build its digital offerings? Will we ever read such a profile on new Bertelsmann CEO Hartmut "Hart" Ostrowski? Maybe not as he may turn out to be a Mohn Family puppet, and shun America. Middelhoff was pro America if not on a personal level then on a business level and that too could have been the recipe that did him in. Thomas Middelhoff doesn't look up as his Gulfstream jet gains altitude over France's Cote d'Azur. He ignores views of the shimmering Mediterranean and the mist-shrouded Alpes-Maritimes. Instead, the chairman and CEO of Bertelsmann, the world's third-largest media company, is hunched over a pile of newspaper clippings, devouring the day's news from the entertainment and online world. And it has already been a long day. After waking at 5 a.m. in the rural German town of Gutersloh and taking a swim in his indoor pool, Middelhoff has hopped a plane for Cannes to give a pep talk to top executives of BMG Entertainment, Bertelsmann's music division. Then it's back to the airport in a Mercedes whose chauffeur seems to be on loan from Formula One. Bertelsmann: A New Net Powerhouse? [BW Archives]

The Bertelsmann board is made up of incompitent idiots

-YOSH Is German media giant Bertelsmann AG (Bertie) full of shit when it comes to their public image of being on the ball? Do they know what their next move will be in order to reap the benefits of the current media environment? According to an anonymous commenter, Bertie is clueless. This is a company that is now over their head. Many of their more profitable operations are old and at the brink. They desperatley need to find new winners.(Un)fortunately they are a bunch of morons who do not know where to turn next. They are looking for losers to buy their crap. They speak highly of themselves, but at the same time are looking to sell. They think there is a greater fool out there.Music is a loser for them as you note. They don't know where to go. Market forces are pushing them in a direction that they can't control. This is new to them.If they want to expand in TV via RTL, good luck. I think they are smarter than that. Or are they? The current board lineup don't know what to do.Look for them to buy other properties. However, unlike Bertelsmann of old, they are mired in debt. And they stopped Thomas Midelhoff from taking Bertie to the next level. Awww the days of the old Bertie.

Bertelsmann’s Ostrowski should exit the sucky music business

Hartmut “Hart” Ostrowski is only 3 days in (U.S time) as the new CEO of German media giant Bertelsmann AG –AKA- Bertie, and surely he is combing through everything to see where the company needs to be focused. We know for sure that for Bertie, books are huge. However music may be something they need to get out of. Sure they confused us when they announced that they wanted to get back into the music publishing business after selling off their music publishing arm to Universal. But under Ostrowski, will Bertie be in the music business for long? The current state of the business can’t be looking good to Ostrowski at all. Sales are in the toilet and digital piracy continues to be at an all time high. So is Hart looking at this and is considering getting out of the business once and for all? We sure hope so. Earlier last year rumors were running wild that Bertie was seeking to sell its 50% stake in Sony-BMG, either back to their Japanese partners at Sony, or to an outside buyer. Maybe Bertie was thinking about selling at that point and floated the story themselves to see if any potential buyers would emerge, but apparently none did. Ostrowki’s focus is on internet, books and the education sector, which itself falls under books. Bertie isn’t exactly the digital player that former CEO Thomas Midelhoff was working hard to transform it into, so we can see why this would be one of his main focuses. Bertie should sell off their 50% in Sony BMG and use that money to ramp up these areas since these are strong areas for them. None of their counterparts currently have a hand in the music business, at least not a whole hand, maybe a finger tip. Big media owning record companies are so 1990s and in a way, Bertie may be stuck in that era. -SDH

Bertelsmann's new regime claims its first victim....

Jasmine Borhan the spin doctor for German media giant Bertelsmann AG -AKA- Bertie since 2005, has suddenly decided to pursue other interests just in time for the coming of new Bertie CEO Hartmut "Hart" Ostrowski. In an announcement posted on Bertie's corporate site December 21, 2007, the company made sure to mention that it was her own decision to leave, almost sounding as if they were trying to convince themselves. But we all know that when a new CEO takes charge, he/she kicks leftovers to the curb to make room for his/her own people. You are even more likely to be kicked to the curb when you're a newbie. Jasmine Borhan was only with Bertie for about 2 years so apparently Mr. Ostrowski's henchmen want to surround the boss with Bertie veterans. Can you blame them? Who better to spin Bertie's bullshit than a longtime bullshitter from within Bertie? This may be the beginning of many more exits now that Ostrowski is officially in control. -YOSH

Two Media Giants start the New Year under new leadership and a huge microscope

-SHOMARI HINES At two of the world’s biggest media companies, this Tuesday marks the beginning of a new era. On Jan 1st 2008 Both Time Warner and Germany’s Bertelsmann AG will hail new leaders and perhaps start to head down a new path to greater domination or lack there of. For Jeff Bewkes, his appointment as Time Warner’s new CEO wasn’t a surprise to anyone. As a matter of fact, his appointment was long desired by people inside and outside the company with hopes that he will be the one to inject some energy into the overweight media giant. There is no doubt that all eyes are on Jeff Bewkes as Wall Street places bets on what his first 100 days as CEO will be like. Jeff will have to come out swinging and try his best to land as many hits as possible. At the same time, well not literally the same time due to the time difference but you get the point, German media giant Bertelsmann AG, will also roll under the leadership of new CEO Hartmut “Hart” Ostrowski. Hand picked by the Mohn Family, who holds what seems like an unbreakable grip on the media giant, Hart takes over a company that is notorious for flip flopping, but controls some recognizable brands like Columbia House, Random House and 50% of music giant Sony-BMG. For Hart, we see a serious push into digital, more consolidation and perhaps an exit from the music business not too far down the road. Like Bewkes, many eyes are on Ostrowski. We will be watching these two young men very closely.

Bertelsmann Aggregated: Bertie and News Corp | Bertie to sell G&J | Bertie flip flops on RTL buyout plan | Mohn family still controlling

-YOSH German media giant Bertelsmann continues to prove us right when it comes to their flip flopping ways. They had this huge plan to buy the remaining 10% of RTL it doesn't already own, and what do they do? They scrap it. These fuckers just can stick to a plan can they? [Guardian] Is Bertelsmann in some kind of back door deal with News Corp to take over News Corp's Harper Collins? If this is the case, the book business must be really big for Bertie and Rupert Murdoch must be looking to offset the cash he dropped on Dow Jones. A sale of Harper Collins by News Corp would probably be good for News Corp as HC is responsible for a small chunk of News Corp's annual revenue. [Reuters] Is Bertie planning to get out of the magazine business by seeking a sale for G&J? They sold the U.S. business of G&J a while back so it wouldn't be a surprise. Selling off the magazine and buying into more books, does indicate that books is king at Bertie [Bloomberg] The Mohn family which controls Bertelsmann are nothing like the Bancrofts. There is probably no money in the world that would make them hand over their personal piggy bank that is Bertie. They continue to tighten their grip on Germany's biggest media company. The latest grip tightening comes with the appointment of Brigitte Mohn to its supervisory board. [Bloomberg]

Bertelsmann also has liars and thieves as board members who buy their way out of trouble

German media giant Bertelsmann (Bertie) like other media companies is no stranger to scandal. The latest for them comes via a gasbag by the name of Werner Weidenfeld , a member of the board of Bertie's foundation who was being investigated for booking private bills as company expenses. Weidenfeld who is one of the best known political scientists in Germany will excuse himself from the board come November 30th. What was he billing to the company? Who knows? Perhaps prostitution services or supplies for a Science project he was working on? We will probably never know because the bastard bought his way out of trouble leading prosecutors to close the investigation. Perhaps a deeper look would have revealed a wider involvement of other Bertie board members and senior execs. Of course in a statement Bertie made nice the situation. The Munich prosecutors' office, which had begun an inquiry after an anonymous complaint, said Monday it offered to close the investigation in exchange for a payment of €10,000, or $14,000, from Weidenfeld. Prosecutors found some documents backing the allegations, although the "potential extent of the damage" was not "significant," Anton Winkler, a spokesman for the office, said Tuesday. Weidenfeld has been a board member of the Bertelsmann Foundation since 1992. Bertelsmann and Weidenfeld decided to end their collaboration by mutual agreement, the company said. Director steps down from Bertelsmann [IHT]

The Early Digital Guy: Thomas Middelhoff saw the future but was cut short by a reclusive controlling family, and the Internet bubble deflation

The shifting at flip flopping German media giant Bertelsmann (Bertie) has been happening slowly and mostly under the radar for months now in prep for the official arrival of incoming ruler Hart Ostrowski. It looks like Ostrowski has quietly handed over his CEO title at Bertie division Arvato to Rolf Buch, but still holds on to the Chairmanship as he waits for current Bertie CEO Gunter Thielen to leave the building. Gunter took over when the more aggressive digital media seeking Thomas Middelhoff was booted for basically pushing the company in the direction all big media players are going now. Middelhoff went high and low getting Bertie into the digital media business. Under Middelhoff, Bertie increased its internet activities by starting the online media portal BOL (Bertelsmann Online), which was sold to buch.de in 2002. But he then stepped back from these online engagements, for example by selling its shares of AOL-Europe back to Time Warner. Was this due to pressure from the clueless board of Bertie? Sure the internet bubble was still fresh off the bust, but Tom Middelhoff was the media CEO back then, that all media CEO's are racing to be in this digital media age today. Will incoming CEO Hart Ostrowski build up Bertie's digital media business, to make sure that Bertie is relevant in the next five to ten years? Middelhoff pissed off the secretive Mohn family when he put in motion plans to take the company private which would have given him the cash and glitz he, as well as the company needed to build the company's Internet offerings and status among its competitors, but not too long after he was canned. Back in 2002 Columnist Dan Milmo said Bertie has an image problem, and five years after, this still seems to be the case. Bertie needs to get out more, its senior execs need to rub elbows with America’s big media players and get into the club. The only glitzy business that Bertie is associated with here in the U.S. is it’s 50% stake music giant Sony-BMG and god knows how long they will be part of that. Bertie needs to get hip. Come on can’t you see, Hart Ostrowski escorting Beyonce to a major music event? Dudes, you have the potential utilize it. Is Thomas Middelhoff the next Rupert Murdoch? [MG 2002]

Bertelsmann's Random House getting into bed with the well hung Google

The world's biggest book publisher Random House, is getting into bed with the World's biggest web searcher, Google. Random House has always held out but it looks like Google will finally get the publishing company to hop in the sack to make beautiful book scans together. The two parties are talking to one another about the less controversial part of Google 's book-scanning project, its partner program, sources with knowledge of the matter told Reuters at this week's Frankfurt Book Fair But it looks like Random House is the only one kissing and telling while Google has nothing to say. When asked this week whether the parties were close to an agreement, a Random House spokesman said: "Random House continues to have periodic constructive conversations with Google on issues of mutual relevance." Google declined to comment. Google, Random House Move Closer on Book Search [eWeek]

OK Bertelsmann, but what about blabber mouth employees?

German media behemoth, Bertelsmann -AKA- Bertie is going the extra mile to help prevent leaks and sneaks. The company has started encrypting the computer work, including some e-mails, of its high-level executives. That’s all good and dandy but how do they plan to stop leaks via word of mouth and all other communication avenues? Basically Bertie has put in place its own Bush Administration style domestic spy campaign probably because they may have a gut feeling that there is a rogue exec in their midst, or there are major changes coming and they want to keep it top secret until it happens. Anyway Investor's Business Daily sat down with Bertie's spy chief, another dude with a funny name, Tom Goschutz who explains why. I know we always go back to this, but some how some way, we think incoming CEO Hart Ostrowski, is already calling the shots from behind outgoing CEO Gunter Thielen, another guy with a funny name, and this is Hart's doing. Soon phone taps will be put in place, if it hasn’t been already. No more porn surfing on company time. IBD: What kinds of leaks? Goschutz: It's not so much what we usually hear in the press, what you might usually hear in the U.S., about any breach notifications and privacy laws and so on. That's not the issue. It's more at a strategic level -- that things we've been discussing on our company strategy, in terms of mergers and acquisitions and so on, have been discussed in the media even before we've decided. This is why the business side, and actually the board, has driven this initiative and not the IT (information technology department). Oh dam, there goes our source!! We Kid We Kid!!! Encrypting Exec E-Mail Addresses Security Issue [IBD via Yahoo! News]

Flip Flopping Bertelsmann flips again

First they merged their music business with Japan's Sony Corp, and then there was word that they wanted to sell their 50% stake in the company, and then they said they are sticking with the music business. Then they slaughtered a chunk of their Book marketing employees, and then merged it into their CD & DVD marketing business Columbia House. Then they took that and dumped it into its book publishing unit Random House. But before that, about a year ago they sold their music publishing unit to Universal Music, and now guess what? The media company that holds the platinum medal for most undecided is now looking to spend money to get back into the music publishing business. The appeal of music publishing to Bertelsmann managers is that it generates a more stable revenue stream than music recording, the newspaper said. Music publishers manage recording artists' copyrights and charge advertisers, television and radio stations for using their songs. BMG Music Publishing was sold primarily to reduce debt, the newspaper said. Bertelsmann, owner of broadcaster RTL Group and publisher Gruner + Jahr, will not be able to start operations at the new unit before 2009 as it agreed with Universal to stay out of the business until that time as part of the sale of BMG Music Publishing. Wow! Didn’t these so called managers know that before they sold out to Universal? You know what Bertie.... you make it too easy. Hopefully when Hart takes over he can get things in order. God knows Bertie needs it. Wonder how long until they sell Random House and then start another book publishing/marketing business? Bertelsmann prepares to re-enter music publishing - report [Sharewatch]

Bertelsmann still trying to figure out what to do with it's book club business

-SDH We are kinda late on this one, but we have an excuse, we were down for a while trying to figure out if we still wanted to do this shit. However after many emails from ticked off readers who demanded we resume publishing here we are. Anyway, as if folding it's Bookspan book marketing business into it's DVD/Video marketing business resulting in massive layoffs wasn't enough, German media giant Bertelsmann is now throwing the recently combined companies into the Random House box. We don't know if this is some kind of attempt to find another reason to roll heads or reduce divisions, but the businesses do go well together. Hey it's all in preparation for the coming of Hart Ostrowski in approximately 16 weeks. BERTELSMANN'S CLUBS GO TO RANDOM HOUSE [NYP]

Germans quench their thirst for Long Island blood

So the Germans stormed through the Bookspan offices and left only a few breathing. The Blood Bath has finally come and gone and now the blood spatter on the walls and the floor has now dried to a dark brown crust. Perhaps soon the survivors will all have to put up with the commute to and from the offices of BMG Columbia House at One Penn Plaza? Well to those who perished we say good luck and may you land on your feet when you blow through your severance and your unemployment runs out.

Will "Pending Blood Bath" do?

-LENN HINDSMANN Apparently we touched a nerve or two over at Bookspan or Bertie or Direct Group… whatever. It was brought to my attention by our publisher and I felt it was appropriate to issue some calming words. Someone doesn’t like the fact that we refer to the current situation there as a “Blood Bath” and we have to admit that we may have jumped the gun a bit. How can we tag something its not? So with that said, going forward we will refer to it as a “Pending Blood Bath” instead of just “Blood Bath”. This makes it clear that this is something that hasn’t taken place as yet, but is likely to happen as the powers that be at BMG Columbia House & Direct Group decide on how many bodies they plan to bury, because some costs have to be cut from somewhere right? Unless of course Markus Wilhelm was making so much money that his departure hit the cost saving goal.

Our guide to dealing with a corporate blood bath

-LEN HINDSMANN All week we have been talking about the pending changes that may come for many at book marketing firm Bookspan. In life we all have to deal with pain, anger, stress etc and for some they come out on top all the time. Getting laid off from your job because the mother ship has to make good on paper, is something most of us fear. With Bertelsmann, buying out its long time Partner Time Warner’s 50% stake in Bookspan, right away anyone who isn’t naïve knew that this spelled trouble. Anyway, we’re known for being some of the most generous bastards on the net, so we decided to help prepare some of you for the day your bosses call you into a conference room to shit can you after being shit canned himself/herself. Below are the basic steps you should take before and after the shit canning. If you follow these simple steps you should be OK! They were originally published in Businessweek but we added our two cents as well. CONTINUED.... Even though your first temptation may be to say you can't fire me, I quit, that's generally not a good idea. The first thing to do is to review the company's manual that lists what kind of severance packages it offers to employees. You might also want to talk to other employees who have been fired or laid off to see what they got. But don’t expect them to tell you their business, because after all its not your business to know how much the company raped them First, update your resume and check in with your professional network. Unfortunately the only professional network some of you may have are the same jerks firing you. Don't become hostile or threaten to sue because you won’t have a chance in hell at winning anything because chances are you signed an “At Will” agreement which means they can fire your ass anytime they want without giving a reason. Say little on that fateful day and don't sign anything. Ask for the terms of any severance package in writing and schedule a time to discuss them. This is if security hasn’t escorted you out of the building already. Be prepared to negotiate severance pay, benefits and job assistance. Make sure you get all the vacation and comp time you're owed. Wait who are we kidding, their will be no negotiating, they will stick you with an offer, take it or leave it. Protect your reputation. Negotiate what kind of reference you'll get, then get it in writing. At least if you sucked at your job they will lie to your next potential employer telling them how much of a good worker you were and how sad it was for them to fire you. Seek advice early. Talk to an employment lawyer or read up on the subject. Deciding you were treated unfairly after you sign an agreement may be too late. You know what? If any of you knew anyone who was a victim of the blood bath that took place over at Time Inc, maybe they can give you some pointers.

THIS JUST IN: For Bookspanners in the company's Upper Allen Township facility its business as usual…… for now

-SDH Looks like its not all worries for all of Book marketing firm Bookspan. According to an article in The Sentinel, Bookspanners in the company's Upper Allen Township location are breathing easy for now because well, no one knows what is going to happen when the "Hart & Ewald Show" debuts. Can you blame them? This location reportedly has about 518 bodies, good for the chopping but some lady named Melinda Meals (we can so come up with about half dozen jokes about this name) isn't worried shit. “We are very committed to the local community,” Melinda Meals said. “Nothing is changing at this point in time. It is way too early to know what is going to happen.” Business as usual at Bookspan [The Sentinel]

Say hello to the stars of Bertelsmann's new show

-SDH Their is a new show about to debut from German media powerhouse Bertelsmann AG, you know Bertie, as it is called here in America, and it stars two guys with funny names. The new show is called "The Hart & Ewald Show" starring Incoming Bertie CEO Hart Ostrowski and DirectGroup CEO Ewald Walgenbach. What is the show about you ask? Well lets just say, it aint a comedy but a bloodbath, dressed up to fool us all of unbearable seens which will include pissed off department heads throwing tantrums and perhaps a chair or two and minions begging for mercy as Both Hart and Ewald get all OJ on hundreds of unsuspecting souls. Make sure you tune it, we know we will. It’s looking up to be a huge hit for its producers in Germany. COVERAGE

Awww the good old days

-LENNOX We came across an article by a Carisa Keane in Garden City Life published back in 2002 about the early morning ribbon cutting ceremony to celebrate the opening of the second Bookspan building on Franklin Ave. Now the buildings housing the company may be on the block. Back then Bookspan was a joint venture between media super powers, Time Warner and Bertelsmann (Bertie). We wanted to go back and revisit this moment in time, when all was well and Markus Wilhelm was the man. So much has changed in five years.. Introduced as "Mr. 501" because he spearheaded major renovations to Bookspan's new corporate headquarters at that address on Franklin Avenue, Bill Gatti, senior vice president of Human Resources and Administration, described Friday's ribbon cutting ceremony as a "marriage of people and space and the reinforcement of need and harmony that it creates." The multi-billion-dollar conglomerate created 450 additional jobs at the new site, doubling the workforce to 900 employees. 501 Franklin now includes Bookspan's executive, marketing and administrative operations and Bertelsmann mediaSystems (BmS) data center. Originally built in 1910 with Theodore Roosevelt laying the cornerstone, New York State Assemblywoman Maureen O'Connell said it's truly a pleasure to drive by and absorb the beautiful nature and character that's been preserved and protected. Formerly the home of Doubleday, the building also served as a fitting homage to England's Hampton Court. Second Bookspan Building Opens [Garden Life]

Bertelsmann's Ostrowski Doctrine

-SDH Bookspan employees are already feeling the early effects of Bertelsmann’s “Ostrowski Doctrine”. Bertelsmann’s next CEO will be the hard charging cost cutting, take no prisoners Hartmut “Hart” Ostrowski who rose to the top for his disciplined mentality. Though he won’t officially be CEO until the end of this year, Ostrowski without a doubt already has the ears of the Bertelsmann board and is a favorite of the controlling Mohn family which leads us to believe that recent announcements of consolidations in the U.S. are part of his plan to merge and purge business units with top heavy management structures and high overheads, much like Bookspan. But besides Bookspan, what else will get a taste of the “Ostrowski Doctrine”? The company has been up and down about its stake in Sony BMG but all evidence point to them holding on to their 50% stake at least for now. A major part of the “Ostrowski Doctrine” is an aggressive push into U.S. media markets. The company recently announced that it is setting up a war chest with Morgan Stanley for a planned shopping spree which could see the company stocking up on internet properties to have a foot print in the digital arena. Could there be an Amazon-esque Bookspan.com in the future where book worms can read excerpts from books before buying them? Or perhaps a Bookspan.com which serves as not only an online book store but an online Myspace-esque community where book worms can meet other book worms and meet up to read together at a Starbucks? Not bad ideas but in order to roll out such plans, some heads have to roll which is unfortunate for many. It’s the coming of Hart Ostrowski kids.

Morning Wire: A German bomb is about to drop on Long Island

-LENNOX HINDSMANN A German engineered bomb is about to fall on Long Island based book marketer Bookspan. Bertelsmann (Bertie), the German media giant which bought back a 50% stake in the company from Time Inc, is folding it into its bigger consumer marketing company BMG Columbia House. Some high level exits have already taken place or are imminent. Bookspan CEO Markus Wilhelm is one of the first to announce that he will be leaving the company issuing the cliché reason about spending more time with family, but we’re not buying. Wilhelm was either forced out, or had no choice, which would still work out to him being forced out right? Predictions throughout the media industry are that pink slips will be issued to Bookspan employees from the top on down who will no longer be needed. There are even posts by what appears to be a former Bookspan employee about chaos in the Bookspan offices, where as no one knows who is reporting to who and/or how long they will have their jobs, you know, the usual shit that takes place when the bomb is about to hit. CONTINUED... Come next year there will be a new man in charge at Bertie and his name is Hartmut “Hart” Ostrowski and he is said to be planning on turning each Bertie unit upside down and shake as much cash out of them as possible. Sure he isn’t taking office until the end of the year, but many believe he has already put the “Ostrowski Doctrine” in motion. An anonymous commenter claims there is talk that Bertie may put the two buildings currently housing the Bookspan business in Garden City Long Island up for sale. If this turns out to be true then such a deal would be more proof that Bertie is going all out to save some cash perhaps to further fluff up their recently declared war chest. So what now for Markus Wilhelm? Well we came across a live domain name called markus-wilhelm.com (see screenshot below) which for now is password protected, or maybe it’s an invite only website set up by Mr. Wilhelm. Could this be where he is putting his thoughts down about his bosses in Germany? Is this the blog of a former book club CEO?