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Bertelsmann's Ostrowski plans expansion

Hartmut Ostrowski's desire to set out a new growth strategy for Bertelsmann is turning into a battle between the expansionist ambitions of its new management team and the constraining financial legacy inherited from his predecessors, reports the FT.

Since becoming chief executive of the diverse German media group in January, the former head of its Arvato services division has set about clearing out under-performing corners of the company. The once sacrosanct Direct Group book clubs business is being dismembered, and Bertelsmann's 50 per cent share in its Sony BMG recorded music joint venture has been sold to Sony for €900m ($1.32bn).

Such moves were necessary not just to trim Bertelsmann down to its better-performing businesses, but to put its debt load behind it and find new funds for expansion.

FT

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