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.

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.

Talking Back: Addressing comments made by possible subjects of a previous item

-LENN HINDSMANN From time to time we have to respond to comments submitted by readers who are sometimes misled by our point of view or the delivery of it. Sometimes some of our readers may see something we posted as cruel and unwanted. Sure we can get nasty, but we in no way would go against the little people, at least not if we don’t have to. In this case we are addressing two comments submitted by what we think were from Bookspan employees regarding two items on our site. Below are the comments posted and our response to each of them. COMMENTER: Lumping Bookspan Employees in with the "Losers" is unusually cruel. You do realize that Bookspan Employees are people who have children...people who have to put food on the table...people with mortgages or rent and bills to pay...people who have health-care concerns, who cannot afford to lose their coverage...people who are caring for elderly or ill family members...? To callously (and, indeed, almost jovially) list Bookspan Employees among this week's "Losers" is disgustingly low, in my opinion. CONTINUED... While we do understand that the current situation at your company is nothing to joke about, we still have to pull together our weekly list of the week’s Winners Losers and Idiots. Unfortunately because of said situation you being part of the media industry landed you on our losers section of this list. Being part of the losers list doesn’t mean you are “losers”, but you are losers in the sense that you’ve lost or you are about to lose. However we don’t take the things you mentioned above lightly. They are serious concerns that anyone who isn’t sure if they will have a job tomorrow would have. So to you we say no heart feelings just business, and don’t be shocked if and when you do land on our losers list again this week. COMMENTER: I truly do not understand your insistence on referring to this as a "blood bath," based on one former employee's entirely inappropriate use of the phrase. And thank you so much for your kind "advice." It warms the very cockles of my heart to know that you, "Len Hindsmann" (whoever you are), are looking out for the lil' folks. Honestly, I am just so thankful for the fact that you have not seized upon this opportunity to poke fun at the Bookspan employees. You are the definition of a true humanitarian, Len Hindsmann. I salute you. Well thank you for the salute friend. But you’re mistaken if you think we are basing our following of this unfolding story on that one individual we spoke of before. We keep our sources in the upper echelons of the food chain and by that we mean, the mother ship. See the funny thing is when you work for the company that is part of a bigger organization, you tend to get the cosmetic version (if you will) of the whole situation from your manager and/or director which is always the case. But when you don’t work for the company and you have sources within the mother ship, you get info, not even your manager and/or director are privy to. OK so it was premature to label the situation a blood bath because it hasn’t taken place as yet, and who knows if it even will. In no way do we make fun of people’s jobs possibly being on the line, unless we really hate em, we just write about it our way that’s all. On that note, our sources just told us that Markus Wilhelm’s parking spot is officially up for grabs. We welcome and value feed back from our readers, but just know that when you submit a comment we may “Talk Back” because well, some comments just call for it.

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]

If markus-wilhelm.com is in fact a secret website of the deposed Bookspan CEO, what in the world is it about?

-SDH If the domain name MARKUS-WILHELM.COM is owned by the former Bookspan CEO, then he may want to renew it being that it’s about to expire in August of this year. We can't help but wonder if it is indeed his domain name, what in the world is being protected? Based on the WHOIS info we pulled on the domain, it was registered in August 2002 by someone named.... you guessed it, Markus Wilhelm. We would love to know what is so sensitive that it has to be password protected. As usual being the know-it-alls we are we came up with some subjects of what the site may be about. However if you know different then send us an email with the juice. Here is a list of subjects we think MARKUS-WILHELM.COM may be about: Markus Wilhelm's rants about his tenure at the company Photos and names of female employees he may have been seeing outside the company A log of employees visiting porn websites he never visited before A secret message board set up to communicate with minions Photos of Markus and his family vacationing His not so nice opinions about incoming Bertelsmann CEO Hart Ostrowski Secret video clips of he and Liz Mohn Who knows!

Post by what seemed to be a former disgruntled Bookspan employee disappears into cyberspace

-LENNOX HINDSMANN One of our two morning wire posts this morning included a link to a blog we came across edited by what seemed to be a former employee of Bookspan. However the link has since been removed, yanked, pulled etc. We guess the individual didn't want the attention. If you are reading this, we would like to talk to you about the inner workings and politics at Bookspan. We won't reveal your identity. You seem to have lots to say. Oh yeah by the way we loved the pix of your new apartment too. EARLIER: Morning Wire: A German bomb is about to drop on Long Island

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?

Bertelsmann's purchase of Time Inc’s 50% stake in Bookspan, could spell trouble for many at the book marketing firm

-SHOMARI First Time Inc sold off their book publishing unit, now they sold their 50% stake in BookSpan to Bertelsmann turning 101% of their focus on the magazines and the Internet. Its funny though, we were under the impression that this deal was done about a year ago? So what does all this mean for Bookspan, it's employees and even the Bookspan brand? Will Bertelsmann (Bertie) keep the name, or do away with it like they did Bookspan CEO Markus Wilhelm? Financial terms of the deal were not disclosed, but the Wall Street Journal reported earlier that Bertelsmann's DirectGroup -- which runs the group's book, music and DVD clubs -- would pay about $150 million, citing people familiar with the matter. Bookspan will be integrated into BMG Columbia House, a unit of DirectGroup that markets music and DVDs direct to North American consumers, and will be run by BMG Columbia House Chief Executive Stuart Goldfarb. company memo seen earlier by Reuters and written by Bookspan CEO Markus Wilhelm said Wilhelm was resigning to cut down on travel and spend time with his family. Could a major shake up at the Long Island offices of Bookspan be on the horizon? Update those resumes just in case BookSpanners. Bertelsmann buys rest of Bookspan from Time Inc [Reuters]