RealTime IT News

Pixelpark Fading from the Picture?

Pixelpark may not be in the picture long for German media conglomerate Bertelsmann AG, largely because it just isn't making any money.

Bertelsmann's top boss, CEO Gunter Thielen, said the company may sell some or all of its majority stake in the e-business consulting operation.

The move would continue distancing Bertelsmann from the online world. Earlier this month the company said it would phase out its BOL.com e-commerce businesses that are losing money but would hang on to its stake in online book seller BarnesandNoble.com.

Bertelsmann is in the midst of a fundamental review of its publishing, entertainment and media operations following last July's the abrupt departure of Thomas Middelhoff, its former chief executive.

The company said the departure was due to "differences of opinion" between Middelhoff and the supervisory board "about the future strategy of Bertelsmann. Middelhoff had been a proponent of online ventures. The company is privately held by members of the Mohn family of Germany.

New CEO Thielen said Pixelpark was "not a core business," but he was quotes as saying by the Associated Press that Bertelsmann was not in a rush to decide what to do about Pixelpark, and the company would not simply cut Pixelpark loose and "leave it standing in the rain."

Pixelpark, whose stock hit 182.36 euros ($178.72) in early 2000, was trading at 1.10 euros ($1.08) this week.