BMG Chief Says He Won’t Step Down

Bertelsmann’s music chief, Rolf Schmidt-Holtz, told employees that he would not step down to run the German conglomerate’s RTL Group broadcast unit, despite media reports about a possible move.

In a memo, Schmidt-Holtz also said speculation about a takeover or sale of the music division was “completely unfounded.” He said BMG’s parent had pledged its commitment to music as a core business, but he warned that the division needed a new business model to combat piracy and plunging sales.

-- Chuck Philips