Reader’s Digest Association, Pleasantville, NY, has been talking to Bertelsmann AG, about possibly combining some of its business units with the media giant’s. Talks have focused on Reader’s Digest’s database marketing, book club and magazine units, published reports said.
Bertelsmann, the world’s No. 4 media company, has been seeking acquisitions to better compete with competitors Viacom, and the combination of America Online Inc. and Time Warner Inc.
Reader’s Digest has been looking to cut costs, and adding subscriptions and is expanding its Internet division increase earnings.
Business Week reported in June that Bertelsmann was discussing the possible purchase of Reader’s Digest in June. The price discussed was about $6.3 billion.
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