The international media company Bertelsmann is reorganizing Direct Group’s businesses. After the sale of its operations in France was completed in late May, Direct Group will be disbanded as a stand-alone division of Bertelsmann AG with effect from June 30, 2011. The Bertelsmann group will then consist of the four remaining divisions RTL Group, Random House, Gruner + Jahr and Arvato.

The club and direct-marketing businesses in the German-speaking countries, Spain and Eastern Europe will be managed under Corporate Investments, for which Thomas Rabe is responsible on the Bertelsmann Executive Board. Corporate Investments includes BMG’s music rights business, as well as the Bertelsmann Digital Media Investments (BDMI) and Bertelsmann Asia Investments (BAI) funds.

Strategic options, including a possible disposal, are being reviewed for the Eastern European book distribution business in Russia, Ukraine, the Czech Republic and Slovakia.

Fernando Carro, CEO of Direct Group, will continue to be responsible for Direct Group. He will also take on additional responsibilities in the Group, including in the development of growth opportunities in Central and South America, and Spain.