Generation change in Gütersloh Liz Mohn hands over power to Bertelsmann

As of: June 21, 2021 1:48 p.m.

An era ends at the Bertelsmann media group: On her 80th birthday, Liz Mohn officially hands over responsibility for the clan empire to her son Christoph.

By Thomas Spinnler, tagesschau.de

It’s an exciting year for the Mohn family and thus also for Europe’s largest media group Bertelsmann from Gütersloh, which has been under the family’s control for almost 200 years. A few days ago, Liz Mohn announced that she would be handing the fate of Bertelsmann in the hands of her son Christoph on her 80th birthday today. Liz Mohn has been the spokesperson for the Mohn family since 2002, which directly holds around 20 percent of the company. This position is now taken over by Christoph Mohn – as well as the chairmanship of the steering committee of Bertelsmann Verwaltungsgesellschaft (BVG), in which the family’s voting rights are bundled. This guarantees him control of the entire group via a right of veto and allows him to determine the strategic direction to a large extent. The remaining 80 percent or so of the capital shares in Bertelsmann SE & Co. KGaA are held by foundations such as the Bertelsmann Foundation, the Reinhard Mohn Foundation and the BVG Foundation. Liz Mohn is now also stepping down from the board of the influential Bertelsmann Stiftung.

“My husband was my teacher”

Liz Mohn determined the fortunes of the media empire for a long time. She originally started at Bertelsmann as a secretary. At the age of 17 she met the then company patriarch Reinhard Mohn at a company party and finally married him in 1982.

Then she began to take on tasks in the group with his support. “My husband was my teacher,” wrote the jubilee. Reinhard Mohn took over C. Bertelsmann Verlag in 1947 in the fifth generation and expanded it into a media group. He died in 2009. It was up to Liz Mohn to help shape the change to a digital media company and to determine it in a responsible position.

Largest book publishing group in the world

What kind of company is it that the 80-year-old is now handing over to her son Christoph? The business of the media group already starts with the children. It is active on the education market with the Bertelsmann Education Group. Bertelsmann expects a lot from the growing demand for e-learning.

The group also includes Penguin Random House, the world’s largest consumer publishing group with more than 300 independent book publishers, and the magazine publisher Gruner + Jahr, which is responsible for titles such as “Stern”, “Geo”, “Brigitte”, “Essen & Trinken” or ” Beautiful living “is known.

TV group as a source of revenue

The RTL Group, in which Bertelsmann holds a majority stake of 75 percent, with the channels RTL, RTL 2, Vox and NTV, provides the largest share of group sales. Then there is BMG, the fourth largest music publisher in the world. The second largest group division – measured in terms of sales – is the service company Arvato, which operates call centers and organizes financial services, IT services and logistics for its customers. A total of around 130,000 employees work for the media group worldwide. In the past 2020 financial year, it generated sales of 17.3 billion euros. The “Billionaires-Index” of the news service Bloomberg estimates the current fortune of Liz Mohn at 7.5 billion dollars.

In the sixth generation

Liz Mohn was honored with the Great Cross of Merit of the Federal Republic of Germany in 2010 for her social commitment. Mohn donated, among other things, a singing competition and campaigns for stroke victims. The Bertelsmann Foundation is one of the largest foundations in Germany and, according to its own statements, invested 74 million euros in charitable projects last year. It was founded in 1977 by the corporate patriarch Reinhard Mohn. Critics accuse her of pursuing the interests of the group with her influence.

The new family spokesman Christoph Mohn takes over the reins of the Gütersloh group, which has its roots in the printing of religious works, in the sixth generation. In addition to the 55-year-old and Liz Mohn, their daughter Brigitte is also represented on the steering committee of the Bertelsmann management company

Cruises start again The return of the dream ships

As of: 06/17/2021 3:52 p.m.

The cruise industry is trying to start over in small steps. Successful vaccinations and falling infection numbers are fueling hopes, but the way out of the crisis should not be an easy one.

By Thomas Spinnler, tagesschau.de

The cruise industry, along with the entire tourism sector, was one of the biggest losers in the pandemic. The entire business came to a standstill at times. The 7-day incidence values, which have recently fallen across Europe, and the vaccination campaign, the progress of which is becoming increasingly noticeable, are awakening hopes for a successful restart in 2021, both in the industry and among those interested in cruises. It is not excluded. Just yesterday, a cruise ship with guests left Hamburg for the first time in seven months . This morning went for the first time since the outbreak of the corona pandemic in front of Palma in Mallorca a cruise ship at anchor, the “Mein Schiff 2” of the German shipping company TUI Cruises. It is said to be the first of more than 20 who will be calling this port by the end of August.

“Time was used”

“The chances of a real fresh start for the cruise industry are very good due to the measures that have been taken,” said Helge Grammerstorf, National Director of the Cruise Lines International Association Germany (Clia) tagesschau.de firmly. The providers used the time to expand the security measures against Corona, to keep the ships ready for the incoming operation and to strengthen the sustainability measures.

However, the memory of what happened during the start of the pandemic last year is likely to be fresh for many. Hundreds of vacationers were stuck on board, some for weeks, ports refused entry – the sometimes dramatic images are not so easy to forget.

“Safer than in the supermarket”

That is why protection against corona remains the determining issue on cruise ships. Grammerstorf is certain that health protection on the ships is guaranteed. Individual corona cases cannot be completely ruled out. But both staff and passengers would be tested before boarding, during the trip and also at the end of the trip.

“In principle, it is safer on the ship than when shopping in the supermarket, since the ships are completely sealed off from the outside,” says the Clia director. This also applies to shore excursions, which take place in closed groups that are not allowed to be left. “In the very rare event that a person should test positive during the voyage, it is provided that all affected persons and their contacts are taken off board to protect everyone else,” says Grammerstorf.

The shipyards are also suffering

The industry is an important economic factor. In Germany alone, the ocean cruise business is worth billions. According to the association’s data, the area with around 48,000 employees generated around 6.6 billion euros in 2019. Above all, however, it represents 80 percent of orders from German shipyards.

The German shipbuilders were therefore hit hard by the crisis. Because many shipyards have specialized in the construction and maintenance of cruise ships. Jobs have also been cut, both at the shipyards and among the cruise lines.

“Offers are accepted”

According to Clia, according to the latest available figures from September 2020, around 28,000 jobs have been lost, more than half. If the industry returns to a reasonably normal and predictable course of business, many will return. No wonder, then, when the hope of a new start becomes more and more urgent.

According to Grammerstorf, the customers are very enthusiastic about the offers, there is a great demand for cruises: “Demand pressure has built up while it was not possible to travel. The pre-bookings for 2022 are also very encouraging.” A more precise forecast is currently not possible, as the countries are only gradually opening up and therefore many departures are scheduled at short notice.

High costs, hardly any income

The business will hardly be profitable at first. No income, or at best low income, is offset by high running costs. After all, the ships cannot simply be completely decommissioned when they are in ports or in roadsteads. Some of the crew must remain on board, the ships must be kept functional, which requires regular and intensive maintenance. In addition, the huge passenger capacities of the ships cannot be used to their full capacity despite the start of travel activity due to the corona-related distance rules. Higher costs, also because of the various protective measures, are offset by lower income, which would have to be offset with higher prices. “At the moment, the main thing is to show that cruises can also take place safely under Corona conditions,” emphasizes Grammerstorf. The cruise operators have to accept that it is likely to be a losing business, at least initially

Industry collects billions Record sums for biotech companies

Status: 15.06.2021 10:46 a.m.

The successes of biotech companies such as BioNTech attract investors: The industry has a new financial record in Germany. But the exuberance could be followed by disillusionment. By Thomas Spinnler, tagesschau.de The entire biotech industry is currently benefiting greatly from the attention generated by the rapid and successful development of corona vaccines. The pandemic has given a boost to a sector that is already in the focus of many investors due to technological and medical advances in recent years. As the “Financial Times” (FT) reports, the venture capitalist Flagship Pioneering – one of the major investors in the Vaccine manufacturer Moderna – around $ 3.5 billion for a new fund. Its aim is to promote the next generation of biotech companies.

Fund tries a new model

When investing in the biotech industry, investors must calculate with particular risks. Many of the companies to invest in do not yet have a product on the market. It is uncertain whether this will ever be the case, as the path from research to a marketable product is very long and often fails.

01/06/2021

Flagship Pioneering is now trying a different way. What is special, according to “FT”, is that the fund’s goal is not the usual search for newly founded companies in which to invest. Rather, modern biotechnologies are to be developed in-house in certain segments under the umbrella of the fund. Only then are plans to set up companies as offshoots.

The profits are gushing

Unsurprisingly, financiers are on the lookout for business ideas; they smell a gigantic business. Just a look at the rapidly rising share prices of many companies in the past few months shows how convinced the market players are of a lucrative future for the sector. In fact, profits are gushing – at least for the best-known representatives who have successfully launched products. BioNTech generated a net profit of 1.1 billion euros in the first quarter of 2021. In the first quarter of 2020, the Mainz-based company had to accept a net loss of 53 million euros due to high research and development costs.

05/10/2021

The US vaccine manufacturer Moderna made in the first quarter profit – equal to a billion dollars. In the previous year, Moderna had to cope with a loss of 124 million. The turnover multiplied from eight million to 1.9 billion dollars. $ 1.7 billion of this comes from corona vaccine revenue. While Moderna shares rose by more than 200 percent in the past twelve months, BioNTech shares gained over 340 percent in the same period.

Lighthouse companies in particular benefit

In Germany, the biotech industry set a new financial record last year. As the experts from the testing and consulting company EY calculated in their Biotech Report 2021, financing in Germany reached a peak of 3.1 billion euros in 2020. A comparison with the USA shows the order of magnitude. According to EY, around $ 100 billion went into biotech financing for venture capitalists.

02/27/2021

“Covid-19 is a huge catalyst for the entire biotechnology industry,” said Alexander W. Nuyken, Head of the Life Sciences Sector in Strategy and Transactions at EY and co-author of the study. In their report, the experts at EY point out that the investments essentially relate to the flagship company BioNTech, which alone accounted for 51 percent of the financing volume in 2020. According to Nuyken, biotechnology is part of the solution to a problem that is a matter of fate for humanity. “That has come to mind.”

More help from the state?

This year it’s going on at a high pace: The “Handelsblatt” quotes from preliminary figures from the Bio Deutschland Association. Accordingly, the industry received a total of 870 million euros in capital from January to May. That is around three and a half times as much as in the same period last year. Nuyken campaigns for the state to help even more: “I hope that politicians show more will to improve framework conditions.” There is now an opportunity for the biotech scene to play a major role in this country in the long term or to play an even greater role in the future.

Hope for new products

In fact, taxpayers have already made a major contribution to making the industry so successful: Since the beginning of the pandemic, governments have allocated tens of billions to research and development on vaccines, which are now generating sales and profits for companies. However, it is uncertain whether, thanks to the many fresh billions, the supply of innovative medical products will make a leap. Nuyken warns of disappointing expectations: “If investors with no biotech experience think they can make a quick buck here, they’re wrong.” After the boom, the expert warns, disillusionment could quickly set in.