COLOGNE, Germany (CelebrityAccess MediaWire) — German media conglomerate Bertelsmann, which owns Freemantle Media, producer of "American Idol" and "The X Factor" has completed a corporate reorganization and changed its name.
Now known as Bertelsmann SE & Co. KGaA, Bertelsmann transitioned from a German 'AG' or joint stock company to a 'KGaA' or partnership limited by shares. The shift from AG to KGaA was an “identity-preserving change of legal form,” that will have little bearing on the Bertelsmann's ownership and corporate structrue remains unchanged.
The move however, does open the door for Bertelsmann to issue stock without diluting the holdings of the Mohn family, who control the company. Analysts have suggested that Bertelsmann may be positioning for an IPO that would provide them with capital to pursue more aggressive growth strategies.
In March, Bertelsmann's new CEO, Thomas Rabe told the press that the company would likely shift focus from Western Europe, where there is little room for growth, to markets in Asia and South America. – CelebrityAccess Staff Writers