PW: Bertelsmann Creates Global E-Commerce Group

Looking to focus its international e-commerce operations, Bertelsmann announced a reorganization of key digital business units into the Bertelsmann e-commerce group, and named Andreas Schmidt president and CEO of the group.

Schmidt is formerly president and CEO of AOL Europe, a Bertelsmann partnership. Marcus Pior, a Bertelsmann spokesperson based in Hamburg, told PW the new group is meant to "focus and strengthen" the company's worldwide electronic commerce business. The new BECG will have offices in New York City and Hamburg.

Both Steve Riggio, CEO of BN.com, and Pior declined to comment on reports that the new e-commerce group was considering merging the online bookselling operations of BN.com (owned by Barnes & Noble and Bertelsmann) and Bertelsmann's European online bookselling site, bol.com.

In a prepared statement Thomas Middelhoff, Bertelsmann CEO, said the new e-commerce group will "set up new platforms, deploy and develop cutting-edge technologies and build new brands," and act as "the driving force behind Bertelsmann's pursuit of these new growth areas."

The new e-commerce group will consist of five units: the e-commerce unit, which will include Bertelsmann's 40% stake in Barnesandnoble.com as well as bol.com; the m-commerce unit, which includes wireless communications projects; and the b-commerce unit, which includes broadband and cable TV properties. The BECG will also include its own venture capital unit, BECG Ventures, which will invest in new technologies and brands; and the group will also encompass a strategic alliances division, which will oversee Bertelsmann's partnerships with America Online and TerraLycos as well as pursue new alliances.

In addition, Bertelsmann's multimedia businesses and its book clubs operations and direct-to-consumer businesses will also be reorganized into a separate, combined division by next April. This new division will be headed by Klaus Eierhoff, currently the director of the multimedia division.