Middelhoff Departs Bertelsmann
Late July was a volatile period for the music industry. On the 29th, Bertelsmann CEO Thomas Middelhoff announced his resignation. The "young lion" who ushered the German media conglomerate into the Internet age—and into an ill-advised $100 million investment in now-forgotten Napster—apparently had a very different vision for the future of the company than does the Mohn family, which controls 75% of Bertelsmann stock. "Shareholders had mid- and long-term development prospects that were different from mine," Middelhoff told reporters. "In this context, I had no choice but to resign." Bertelsmann is parent company of BMG, the music giant.