Bertelsmann Launches Venture Capital Fund for Digital Media

GÜTERSLOH, October 19: Bertelsmann has launched Bertelsmann
Digital Media Investments (BDMI), a venture capital fund that will look to make
investments in emerging technologies.

With an initial funding of 50 million euros, BDMI’s mission
is to tap into new technologies and digital media innovation. Richard Sarnoff,
who has been president of Random House’s corporate development group and its
venture arm, Random House Ventures, has been named president of BDMI, and will
report to Bertelsmann’s CFO, Thomas Rabe.

BDMI’s international team based in the U.S. and Germany will
concentrate on digital media opportunities that can aid Bertelsmann’s
multiplatform initiatives for its broadcast television, book and magazine
publishing, music, media services, and direct marketing businesses. Investments
will primarily be minority stakes in early-stage companies, but can also
include majority stakes and external fund investments.

“Bertelsmann has a keen focus on new technologies and
fosters expertise within each of its divisions,” said Gunter Thielen,
Bertelsmann’s chairman and CEO. “We are committed to further extending our
innovative spirit and media leadership by creating a fund dedicated to emerging
technology opportunities.”

Sarnoff noted, “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.” Sarnoff
will continue to be based in New York.