Bertelsmann Launches International Venture Capital Fund Focused On Digital Media
Bertelsmann has established a venture capital fund called Bertelsmann Digital Media Investments (BDMI) and a Luxembourg company to execute and house the BDMI investments. The fund is designed to ensure direct access to emerging technologies and businesses. With an initial funding of €50 million, BDMI’s mission is to tap into new technologies and digital media innovations to support the continued leadership of Bertelsmann’s divisions across the media landscape. Richard Sarnoff, who has been President of Random House, Inc.’s Corporate Development Group and its venture arm, Random House Ventures LLC, additionally has been named President of BDMI, and will report to Bertelsmann’s CFO Thomas Rabe in this capacity.
BDMI’s international team based in the U.S. and Germany will concentrate on digital media opportunities that can enhance or extend Bertelsmann’s existing strengths in broadcast television, book and magazine publishing, music, media services, and direct marketing. Investments will primarily be minority stakes in early-stage companies, but can also include majority stakes and external fund investments where appropriate.
“Bertelsmann has a keen focus on new technologies and fosters expertise within each of its divisions. We are committed to further extending our innovative spirit and media leadership by creating a fund dedicated to emerging technology opportunities. Richard Sarnoff is the ideal candidate for this assignment, since he has excellent experience in funding such opportunities, strong connections in the venture capital industry, and broad familiarity with all of Bertelsmann's businesses above and beyond his responsibilities at Random House,” said Gunter Thielen, Bertelsmann’s Chairman and Chief Executive Officer.
Richard Sarnoff stated: “Technology continues to play an increasing role in all Bertelsmann divisions as digital media, the Web, and mobile access continue to converge on a global scale. This new fund will allow us to supplement the existing in-house knowledge base and support ongoing divisional technology initiatives through investments in pioneering companies.” Mr. Sarnoff will continue to be based in New York.
BDMI will operate in partnership with each Bertelsmann business division, taking investment cues from new business models and digital media trends identified by the divisions as strategic to future growth. It will work with the appropriate Bertelsmann division on each investment for initial evaluation, due diligence and ongoing oversight of portfolio companies.
More information can be found at: www.bdmifund.com
About Bertelsmann AG
The media company Bertelsmann commands globally leading positions in the major markets. Its core business is the creation of first-class media content. Bertelsmann includes RTL Group, Europe’s No.1 in television and radio, as well as the world’s biggest book-publishing group, Random House, with more than 100 publishing imprints (Alfred A. Knopf, Bantam, Goldmann). Gruner + Jahr, the European No.1 in magazine publishing (Stern, Geo, Capital), and the Sony BMG joint venture (Anastacia, Alicia Keys, Beyoncé, Dido, Usher) also stand for creativity and powerful brands. The Arvato division bundles the group’s media and communications services, which include the expanding units Arvato Logistics Services and Arvato Direct Services (distribution, service centers, customer relationship management), along with state-of-the-art printers, storage media production and comprehensive IT-services. Bertelsmann’s direct-to-customer businesses are bundled in Direct Group: book and music clubs with more than 35 million members all over the world.
For further questions, please contact:
Andreas Grafemeyer
Senior Vice President Media Relations
Phone: +49 - 52 41 / 80 24 66
andreas.grafemeyer@bertelsmann.de
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