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Frankfurt (pte051/10.05.2005/16:54) - Bertelsmann AG http://www.bertelsmann.com http://www.bertelsmann.de announced that it will be buying Columbia House, the New York-based DVD and music club.
Bertelsmann is the world's fourth largest media group and encompasses almost all forms of media. The company has publishing, music sales and broadcasting operations in approximately 60 countries all over the world.
The acquiring of Columbia House http://www.columbiahouse.com , which is 85 per cent owned by the Blackstone Group, is reported to be worth US$400.1 million. Fifteen per cent stakes are also held by Sony Corp. and Time Warner.
"This move gives us strategic access to the growing business with DVDs," said Ewald Walgenbach, CEO of Bertelsmann's DirectGroup unit. "As well as broadening our customer base in the U.S. market... In bringing together BMG Direct and Columbia House, we are combining two profitable businesses."
Columbia House sells music online and also via post and its members constitute about 8 million in North America and Mexico.
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