BERTELSMANN REVAMPS
ONLINE OPS

Bertelsmann is bundling its electronic commerce activities into a single division as it prepares a major push to develop media content and services for wireless Internet networks, the Wall Street Journal reports.

The German media giant with activities ranging from book publishing and printing to television, music and book clubs has abandoned efforts to be an Internet service provider and is focusing on providing content and services that can be placed on the Web sites of any Internet service provider.

Bertelsmann appointed Andreas Schmidt, a 39-year-old executive who previously ran its European online venture with AOL, to run the new e-commerce group.

The announcement comes as Bertelsmann tries to step up the competition with market leader Amazon.com. Still trailing Amazon, Bertelsmann is in talks with Barnes & Noble that could lead to closer links between their U.S. online book-selling venture Barnes & Noble.com Inc. and Bertelsmann's BOL.com, people close to the talks told the Wall Street Journal.

Dubbed Bertelsmann e-Commerce Group, the new unit bundles activities with sales of around $500 million a year and 1,500 employees. The unit has five operating divisions: Internet e-commerce, with its Bol.com unit and a 40% stake in U.S. online bookseller bn.com; mobile e-commerce, where it is developing services for wireless Internet; broadband e-commerce, which now comprises Bertelsmann Broadband Group; strategic alliances with Internet service providers like AOL and TerraLycos; and a venture capital fund that will focus on start-ups in Internet, wireless and broadband.

Schmidt's job will be to transform the company's existing e-commerce businesses into global brands and try to put the company in pole position as the race for mobile e-commerce begins. That and how to keep using nifty racing metaphors.