Bertlesmann: Before, during and after Middelhoff

In August 2002, Thielen announced that the Mohn family shares would not be floated in 2005 and that only GBL's share would be offered through the IPO. He said, "We do not necessarily need to bring our shares on to the bourse. We feel we can finance growth on our own." Thielen also announced that he would adopt a conservative approach to improve the company's financial situation, left in shambles by Middelhoff. He added that Bertelsmann had no plans to make any major acquisitions in the near future and that it would only focus on improving the efficiency of operations, cutting debts and increasing profitability. Thielen said that since Bertelsmann had exceeded a self-imposed debt limit, on account of Middelhoff's strategies, the company would work towards reducing that debt through a consolidation exercise...

The profit of €928 million was however, quite low compared to the €1.24 billion earned in fiscal 2001. Company sources attributed this fall in profits to the write-off of Internet investments by the company on account of the loss on those investments. In fiscal 2002, BMG successfully made a turnaround, registering a profit of €125 million, as against a loss of €79 million in fiscal 2001. Bertelsmann sources revealed that they expected DirectGroup also to turnaround in fiscal 2003. Commenting on Bertelsmann's progress post Middelhoff's resignation, the company's website stated, "Bertelsmann has focused its energy on the core businesses, cut its losses, and markedly increased its profitability...