Rolf Schmidt Holtz

Bertelsmann Chairman and Chief Executive Thomas Middelhoff said Thursday that the German media company has more than $4 billion to spend and will look for potential acquisitions as rivals' shares fall. Middelhoff disclosed the war chest in announcing the results of the privately held company's fiscal year, which ended in June. The company said net income rose 44% to $891 million, fueled by its majority stake in European broadcaster RTL Group.

One has spent his entire career in the record business, scouting for talent and working his way up just in time to see the industry start to crumble. The other is a former TV journalist who came to the music world two years ago as an outsider, and thinks he might like to stick around.

Bertelsmann has decided to appoint a former television executive to run its music division after the sudden death of Rudi Gassner, industry sources said. Gassner, who died of an apparent heart attack just days before he was slated to take the reins at Bertelsmann Music Group, will be replaced by Rolf Schmidt-Holtz, the 52-year-old former television head and chief creative officer at the German media conglomerate, industry sources said.

Bertelsmann Chairman and Chief Executive Thomas Middelhoff said Thursday that the German media company has more than $4 billion to spend and will look for potential acquisitions as rivals' shares fall. Middelhoff disclosed the war chest in announcing the results of the privately held company's fiscal year, which ended in June. The company said net income rose 44% to $891 million, fueled by its majority stake in European broadcaster RTL Group.

One has spent his entire career in the record business, scouting for talent and working his way up just in time to see the industry start to crumble. The other is a former TV journalist who came to the music world two years ago as an outsider, and thinks he might like to stick around.

Bertelsmann's music chief, Rolf Schmidt-Holtz, told employees that he would not step down to run the German conglomerate's RTL Group broadcast unit, despite media reports about a possible move. In a memo, Schmidt-Holtz also said speculation about a takeover or sale of the music division was "completely unfounded." He said BMG's parent had pledged its commitment to music as a core business, but he warned that the division needed a new business model to combat piracy and plunging sales.

Richard Griffiths, president of Bertelsmann Music Group's European division, quit Thursday after six months on the job, becoming the second senior executive this month to abruptly exit the record conglomerate. The departure of Griffiths signals new turmoil in the management team established six months ago by BMG Chairman Rolf Schmidt-Holtz. Schmidt-Holtz, a former chief of Bertelsmann's TV unit, was appointed to his post after the sudden death of record executive Rudi Gassner.

* L.A.-based consumer group Foundation for Taxpayer and Consumer Rights has sued Apple Computer Inc., alleging that the iPod nano player is defective because its screen is easily scratched and that the Cupertino, Calif.-based company is breaking its product warranty by charging $25 for replacements. * Sony BMG Music Entertainment, as expected, named Rolf Schmidt-Holtz chief executive and Andrew Lack chairman in a switch of top jobs after months of dispute over the company's management. * A U.S.

The exodus of executives at Bertelsmann Music Group continued Monday, with technology head Kevin Conroy and Chief Financial Officer Tom McIntyre leaving the company. The moves follow the unexpected departures in November of Chief Executive Strauss Zelnick and Chairman Michael Dornemann, who were forced out in a power struggle and replaced by BMG veteran Rudi Gassner.

Olympic track champion Carl Lewis has filed a libel suit against West Germany's Stern magazine and a former teammate, seeking $182 million in damages for a story that alleged steroid use on his part, his lawyer, Timothy Danson, said Thursday in Toronto.

Bertelsmann has decided to appoint a former television executive to run its music division after the sudden death of Rudi Gassner, industry sources said. Gassner, who died of an apparent heart attack just days before he was slated to take the reins at Bertelsmann Music Group, will be replaced by Rolf Schmidt-Holtz, the 52-year-old former television head and chief creative officer at the German media conglomerate, industry sources said.

Bob Jamieson, president of Bertelsmann Music Group's RCA record label, was elevated to chief executive of Bertelsmann's North America music operations as part of a reorganization of the company's management team. The move follows the appointment of former television executive Rolf Schmidt-Holtz to run the media giant's music division.

Sony BMG Music Entertainment is expected to name Tim Bowen as chief operating officer, part of an effort to help heal a rift at the joint venture of Japan's Sony Corp. and Germany's Bertelsmann, said sources within the company who did not want to be identified as negotiations were underway. Bowen, who currently oversees much of Sony BMG's non-U.S. operations, would succeed Michael Smellie, whose departure last year set off a power struggle at the company.