BMG Direct will acquire The Columbia House Company. Terms of the acquisition were not disclosed.
Once completed, the transaction will add Columbia House’s reach as a DVD retailer to BMG Direct’s direct-to-consumer music offerings. Stuart Goldfarb, president and CEO of BMG Direct, will serve as president and CEO of the newly acquired company.
In a statement, Ewald Walgenback, CEO of DirectGroup Bertelsmann, said that that the two companies together would offer a broader selection of products too a larger customer base while simultaneously creating cost efficiencies.
BMG Direct is a division of DirectGroup Bertelsmann. BMG Direct operates a flagship music service, as well as four specialty clubs: the BMG Classical Music Club; the BMG Jazz Club; Sound & Spirit, a Christian and Gospel music club; and Ritmo y Pasion, a Latin music club.
Columbia House provides music, videos and DVD home entertainment products to roughly 8 million on- and offline customers.
