Bertelsmann sells American book club business
From the Associated Press
FRANKFURT, GERMANY —
German media company Bertelsmann said Friday that it was selling its North American book club business, including Columbia House and the Book-of-the-Month Club, to a private investor for an undisclosed sum.
Bertelsmann, which also owns the Random House book publishing business, said the sale of Direct Group North America to Najafi Cos. in Phoenix should close during this quarter. Both companies are privately held.
The Direct Group operates book, music and DVD clubs in the U.S. and Canada, including Columbia House and the Book-of-the-Month Club.
The unit had sales of $1.4 billion last year in the United States, but has seen its sales decline as consumers favor online shopping and digital downloads.
