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There are revelations aplenty in the media following the appointment of the 39-year-old German Markus Dohle to the top job at Random House, including the suggestion that Random House's outgoing c.e.o. Peter Olson had wanted to "dismiss" RH's UK head Gail Rebuck. While other reports suggest that those executives passed-over for the top job might now take their careers elsewhere.
http://www.nytimes.com/2008/05/21/business/media/21random-web.html?ref=w... target="_blank" title="NYTimes">The Rebuck story comes from the The New York Times and it should be noted was shot down emphatically by Stuart Applebaum, Random House's spokesman: "I wouldn’t dignify it with a comment. I would just label it as gossip." However, the newspaper reports that a senior Bertelsmann executive said that Olson’s split with the German management began last September when he proposed dismissing Rebuck. This was vetoed by Bertelsmann's c.e.o. Hartmut Ostrowski and Thomas Rabe, Bertelsmann’s chief financial officer.
Meanwhile, http://www.ft.com/cms/s/0/71e1f9a0-268f-11dd-9c95-000077b07658.html" target="_blank" title="FT.com">the FT reports that the 39-year-old (Dohle) has leapfrogged powerful Random House insiders to become the second Ostrowski protégé to join Bertelsmann’s six-person board. "People close to the privately held media group said the appointment could see heavyweights reconsider careers at Random House – UK head Gail Rebuck and Germany boss Jörg Pfuhl had both been in the running."
But they also said Ostrowski was prepared for, but not intent on, such fallout, as well as accusations that Bertelsmann is becoming ever more provincial after the controlling Mohn dynasty vetoed a flotation two years ago. Olson was the only native English speaker on Bertelsmann’s main board.
http://www.nypost.com/seven/05212008/business/panic_over_randoms_act_111... target="_blank" title="New York Post">Tabloid the New York Post reports that most observers believe Dohle will cut jobs at Random House. "People are panicking and saying it couldn't be worse," said one Random House author. "On the face of it, it looks like the guy is a complete production bean counter. It doesn't look hopeful that he'll share the romantic idea of literature and publishing."
The FT notes that executives who know Dohle said his strategy could include bringing books and existing multimedia products to market more quickly, better marketing in co-operation with booksellers, and parallel distribution in print and on the internet.
Separately, Bertelsmann announced that Richard Sarnoff, the president of the company’s digital media investments group, had been appointed co-chairman of Bertelsmann Inc, where he would play a critical role in directing strategy in the United States.