MUMBAI: Bertelsmann, the international media group, said that it is taking full ownership of the innovative music rights management company BMG by acquiring the shares currently held by Kohlberg Kravis Roberts & Co. (KKR), and will continue to develop BMG as a wholly owned subsidiary.

The transaction, which is subject to regulatory approval, is scheduled to close during the first half of this year.

The parties have agreed to keep the financial details of the transaction confidential. BMG administers the rights to more than one million songs,including works by such artists as Bruno Mars, Duran Duran, Gossip, Johnny Cash, and Will.i.am. It also represents the master rights (composition and recording) of artists who include Brian Ferry, Nena and Anastacia.

Bertelsmann Chairman & CEO Thomas Rabe said, "This is a great day for Bertelsmann: We are bringing the music home to our group. A few years after our exit from the traditional music business, in association with KKR, we have succeeded in building the world?s fourth-largest music rights management business." Rabe emphasized that KKR has been a good partner. "Our partnership made it possible for BMG to take advantage of consolidation opportunities and to rapidly advance the organic expansion of the business. I thank them for an excellent collaboration."

Taking full ownership of BMG is an important step in putting Bertelsmann?s growth strategy into practice, Rabe explained. "We are happy to have BMG as our own company again. CEO Hartwig Masuch and his team deserve our thanks for the passion and know how they brought to developing a small creative nucleus into a powerhouse that provides the right answers to the challenges of the music industry in this digital age."

KKR Europe Head Johannes Huth said, "Our innovative partnership with Bertelsmann, which combined the professional expertise of a global media company with the financial strength, network and business-building expertise of KKR, was a complete success. We explored new business approaches with Bertelsmann; BMG did pioneering work in the music rights market with its digital, service-focused business approach. The model of a ?growth and build? partnership between a corporate group and KKR is bound to be seen more often in the future."

MUMBAI: RTL Group has appointed Thomas Rabe as its new chairman, while Guillaume de Posch and Anke Sch?ferkordt taken over as the new co-CEOs.

Rabe, who is Bertelsmann chairman, CEO succeeds Siegfried Luther whose mandate as non-executive director expired. Luther had been a member of the RTL Group Board of Directors since 24 July 2000 and its Chairman since 9 December 2004.

Rabe said, ?Siegfried Luther is one of the founding fathers of today?s RTL Group. He played a formative role in the Group?s highly successful development since its creation and in raising the quality of the work of the Board and its Committees.?

In its AGM, RTL Group appointed the following new members to the RTL Group Board of Directors: Elmar Heggen ? RTL Group CFO and Head of the Corporate Centre in Luxembourg; Guillaume de Posch and Anke Sch?ferkordt as Executive Directors, and Bernd Kundrun and Rolf Schmidt-Holtz as Non-Executive Directors.

As already announced by Bertelsmann on 7 February, Anke Sch?ferkordt will take a seat on the executive board of Bertelsmann. Her appointment becomes effective 19 April. In addition, both Anke Sch?ferkordt and Guillaume de Posch are also members of the Group Management Committee (GMC) of Bertelsmann.

MUMBAI: The supervisory board of Bertelsmann AG has appointed Thomas Rabe, currently CFO of the group, as its future chairman and CEO.

Rabe will succeed the current chairman and CEO Hartmut Ostrowski on 1 January 2012.

Ostrowski is resigning from the executive board for personal reasons and will be moving to the supervisory board. The changeover takes place amicably and by mutual consent. 

Ostrowski joined Bertelsmann AG in 1982 and has worked for the company in various functions ever since, with only a brief interruption.

In 2002, when he became Arvato CEO, he also took a seat on the Bertelsmann executive board, and was appointed its chairman on 1 January 2008. His achievements include expanding Arvato into an international services
company; successfully steering Bertelsmann through the economic crisis; and paying down the debt to the target level.

Chairman of the supervisory board Gunter Thielen said, ?Bertelsmann owes Hartmut Ostrowski a great debt
of gratitude. He led the company in difficult times. I look forward to continuing to work with him on the supervisory board. The timing of the changeover ensures that the passing of the baton to Thomas Rabe will be handled smoothly.?

Rabe has served as Bertelsmann CFO and head of the corporate centre since 1 January 2006. Prior to this, he had held the same position at RTL Group in Luxembourg since 2000.

In addition to his duties as chief financial officer, Rabe is also responsible for the corporate investments growth initiatives, which include the holding in the music rights company BMG, and the Bertelsmann Digital Media Investments (BDMI) and Bertelsmann Asia Investments (BAI) funds. His successor as CFO will be appointed at a later date.