So much for going public. The Guardian reports that Bertelsmann has arranged to buy back the share owned by Belgian financier Albert Frere (responsible for GBL, which owned 25% of Bertelsmann.) The buyback – effective July 1 – would be funded by bank loans and the sale of its BMG music business.
“The share buyback is the best option to secure the continuity and the successful development of the company on the basis of our corporate culture of partnership,” said the Bertelsmann chief executive, Gunter Thielen.
Liz Mohn, speaking on behalf of the Mohn family, which has run the company since 1947, said she was “happy” to have secured the buyback. “It guarantees the independence of the company and its lasting and sustained development on the basis of our proven corporate culture,” she said.
So just to reiterate – the media conglomerate will now be wholly owned by the Mohn family, who are now planning to auction off its music publishing division BMG in the next month or so.