The man who decides how much BMG gets to spend on acquisitions is sticking around for at least another five years.
Thomas Rabe has signed a new half-decade deal to remain as CEO of Bertelsmann – the Berlin-based media giant and parent to BMG.
Prior to his appointment as Chairman & Chief Executive Officer on January 1, 2012, Thomas Rabe (pictured) had served as CFO of Bertelsmann since 2006 – after having held the same function at RTL Group, which is majority owned by Bertelsmann, from 2000 until the end of 2005.
Bertelsmann became the sole owner of BMG in 2013. It continues to fund BMG’s acquisitive activity.
The music company, led by Hartwig Masuch, bought a controlling of Chess Records’ publishing company, ARC, earlier this month.
Christoph Mohn, Chairman of the Supervisory Board of Bertelsmann, said: “The Board is delighted about the extension of the contract with Thomas Rabe.
“Since taking office a good four years ago, he has strategically realigned the Group to become faster growing, more digital and more international in the long term.
“The progress made on this path under Thomas Rabe’s leadership has been enormous, just consider the digital investments of RTL Group including in companies such as BroadbandTV, StyleHaul and SpotX, the merger resulting in the world’s largest trade book publisher Penguin Random House, the re-entry into the music business with the new BMG, and the founding of the Bertelsmann Education Group.
“Thomas Rabe has strategically realigned Bertelsmann to become faster growing, more digital and more international.”
“At the same time, Bertelsmann saw a strengthening of its profitability; most recently a record nine-months operating result was achieved in 2015. On behalf of the entire Supervisory Board, I would like to sincerely thank Thomas Rabe for his excellent work during his first term of office. We look forward to our cooperation in the years ahead, and wish him continued success.”
Thomas Rabe, Chairman & CEO of Bertelsmann, said: “I am very grateful for the confidence placed in me by the Supervisory Board, and look forward to continuing along our chosen path with my fellow Board members.
“In a changing market environment, we will work to align Bertelsmann to its three pillars of media, services and education with a view to high growth and profitability, in order to ensure the long-term independence of this fascinating company. We will continue to devote all our strength towards this goal in the years ahead. “
Bertelsmann operates in about 50 countries around the world.
Its group includes the broadcaster RTL Group, the trade book publisher Penguin Random House, the magazine publisher Gruner + Jahr, the service providers Arvato and Be Printers, the music company BMG and the Bertelsmann Education Group.
The company has more than 112,000 employees and generated revenues of €16.7 billion in financial year 2014.
In addition, Bernd Hirsch, 45, has been named as Bertelsmann’s new Chief Financial Officer (CFO).
Hirsch will take up the role on April 1, 2016, succeeding responsibility as CFO from Thomas Rabe, who had taken on the role on a transitional basis in addition to his duties as Chief Executive Officer.Music Business Worldwide