Thomas Middelhoff
Encyclopedia
Thomas Middelhoff is a German
corporate manager. He was on the board of directors of Bertelsmann
from 1990–2002, being CEO from 1998. From 2004 to 1 March 2009, Middelhoff was chairman of the supervisory board of Arcandor
(previously KarstadtQuelle AG), and CEO of the company.
, Germany, the son of a textile businessman. He studied business
at the University of Münster
and received his doctorate at the Institute for Marketing under the supervision of Heribert Meffert. While at university, he was already working in his father's textile business. After graduating he was given a high post in the company.
, a multinational media corporation based in Germany, as assistant manager of the graphic firm in Gütersloh
. In 1990, he became a member of the board of directors of Bertelsmann.
Middelhoff recognized the potential of the new digital media early. He made small investments into Firma Pixelpark in Berlin among others, on Bertelsmann's behalf. As an early believer in the rapid development of the Internet, he suggested a large financial participation of Bertelsmann in America Online (AOL) when it was still a young company, and created the joint venture AOL Europe, with a financial holding of $50 million for a 5% stake. This investment was extremely successful and would later influence Middelhoff's ascent in the company to chairman of the board
. In May 1995, he became a member of the governing board of AOL, and during his time in this position Middelhoff became a "close friend" of AOL's founder, Steve Case
.
In 1995, Bertelsmann and AOL started the joint venture
AOL Germany. From November 1998 to July 2002, Middelhoff was the CEO of Bertelsmann. During this time it increased its internet activities by starting the online media portal BOL (Bertelsmann Online), which was sold to buch.de in 2002. But Bertelsmann soon stepped back from these online engagements, selling its shares of AOL-Europe back to Time Warner
, which had merged with AOL in 2001. In January 2000 Middelhoff declined a directorship at AOL and resigned from the supervisory board of the corporation.
Investcorp
. The German businesses of the corporation included Gerresheimer Glas and Callahan. After APCOA Parking
was taken over by Investcorp in 2004, he was appointed to its supervisory board.
Since 2003 Middelhoff has also been a member of the board of The New York Times Company
responsible for the compensation committee. As a confidant of Madeleine Schickedanz
, he became the chairman of KarstadtQuelle AG's supervisory board in June 2004 and its CEO in May 2005. KarstadtQuelle was renamed Arcandor
in 2007.
On June 5, 2009 several media sources reported that the German justice minister Brigitte Zypries
had recommended that the state prosecution service look into allegations of fraud against Middelhoff, based on the fact that he and his wife held shares of an investment fund that bought real estate from Arcandor and then allegedly leased it back it to Arcandor for unusually high rental fees.
Middelhoff has five children and lives with his family in Bielefeld
.
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
corporate manager. He was on the board of directors of Bertelsmann
Bertelsmann
Bertelsmann AG is a multinational media corporation founded in 1835, based in Gütersloh, Germany. The company operates in 63 countries and employs 102,983 workers , which makes it the most international media corporation in the world. In 2008 the company reported a €16.118 billion consolidated...
from 1990–2002, being CEO from 1998. From 2004 to 1 March 2009, Middelhoff was chairman of the supervisory board of Arcandor
Arcandor
Arcandor AG is a holding company located in Essen, Germany that oversees companies operating in the businesses of mail order and internet shopping, department stores and tourism services. It was created in 1999 through the merger of Karstadt Warenhaus AG, which was founded in 1920, and Quelle...
(previously KarstadtQuelle AG), and CEO of the company.
Background
Thomas Middelhoff was born in DüsseldorfDüsseldorf
Düsseldorf is the capital city of the German state of North Rhine-Westphalia and centre of the Rhine-Ruhr metropolitan region.Düsseldorf is an important international business and financial centre and renowned for its fashion and trade fairs. Located centrally within the European Megalopolis, the...
, Germany, the son of a textile businessman. He studied business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
at the University of Münster
University of Münster
The University of Münster is a public university located in the city of Münster, North Rhine-Westphalia in Germany. The WWU is part of the Deutsche Forschungsgemeinschaft, a society of Germany's leading research universities...
and received his doctorate at the Institute for Marketing under the supervision of Heribert Meffert. While at university, he was already working in his father's textile business. After graduating he was given a high post in the company.
Bertelsmann (1986 - 2002)
In 1986 he moved to BertelsmannBertelsmann
Bertelsmann AG is a multinational media corporation founded in 1835, based in Gütersloh, Germany. The company operates in 63 countries and employs 102,983 workers , which makes it the most international media corporation in the world. In 2008 the company reported a €16.118 billion consolidated...
, a multinational media corporation based in Germany, as assistant manager of the graphic firm in Gütersloh
Gütersloh
Gütersloh is a city in North Rhine-Westphalia, in the area of Westphalia and the administrative region of Detmold. Gütersloh is the administrative centre for a district of the same name and has a population of 96,320 people.- Geography :...
. In 1990, he became a member of the board of directors of Bertelsmann.
Middelhoff recognized the potential of the new digital media early. He made small investments into Firma Pixelpark in Berlin among others, on Bertelsmann's behalf. As an early believer in the rapid development of the Internet, he suggested a large financial participation of Bertelsmann in America Online (AOL) when it was still a young company, and created the joint venture AOL Europe, with a financial holding of $50 million for a 5% stake. This investment was extremely successful and would later influence Middelhoff's ascent in the company to chairman of the board
Chairman of the Board
The Chairman of the Board is a seat of office in an organization, especially of corporations.Chairman of the Board may also refer to:*Chairman of the Board , a 1998 film*Chairmen of the Board , a 1970s American soul music group...
. In May 1995, he became a member of the governing board of AOL, and during his time in this position Middelhoff became a "close friend" of AOL's founder, Steve Case
Steve Case
Stephen McConnell "Steve" Case is an American businessman best known as the co-founder and former chief executive officer and chairman of America Online . Since his retirement as chairman of AOL Time Warner in 2003, he has gone on to build a variety of new businesses through his investment...
.
In 1995, Bertelsmann and AOL started the joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
AOL Germany. From November 1998 to July 2002, Middelhoff was the CEO of Bertelsmann. During this time it increased its internet activities by starting the online media portal BOL (Bertelsmann Online), which was sold to buch.de in 2002. But Bertelsmann soon stepped back from these online engagements, selling its shares of AOL-Europe back to Time Warner
Time Warner
Time Warner is one of the world's largest media companies, headquartered in the Time Warner Center in New York City. Formerly two separate companies, Warner Communications, Inc...
, which had merged with AOL in 2001. In January 2000 Middelhoff declined a directorship at AOL and resigned from the supervisory board of the corporation.
Subsequent career
Beginning in 2003, Middelhoff coordinated the European affairs of the holding companyHolding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
Investcorp
Investcorp
Investcorp is a manager of alternative investment products, serving high-net-worth private and institutional clients. Its principal client base is in the six countries of the Gulf Co-operation Council, but it also has institutional clients in North America and Europe...
. The German businesses of the corporation included Gerresheimer Glas and Callahan. After APCOA Parking
APCOA Parking
APCOA Parking AG is Europe's longest-established full service parking management company, managing over 860,000 parking spaces, across 15 countries and with around 4,500 employees...
was taken over by Investcorp in 2004, he was appointed to its supervisory board.
Since 2003 Middelhoff has also been a member of the board of The New York Times Company
The New York Times Company
The New York Times Company is an American media company best known as the publisher of its namesake, The New York Times. Arthur Ochs Sulzberger, Jr. has served as Chairman of the Board since 1997. It is headquartered in Midtown Manhattan, New York City....
responsible for the compensation committee. As a confidant of Madeleine Schickedanz
Madeleine Schickedanz
Madeleine Schickedanz is a German entrepreneur. She is the daughter of Gustav and Grete Schickedanz, the founders of catalog retailer Quelle Versand, which merged with Karstadt to form one of Europe's largest companies....
, he became the chairman of KarstadtQuelle AG's supervisory board in June 2004 and its CEO in May 2005. KarstadtQuelle was renamed Arcandor
Arcandor
Arcandor AG is a holding company located in Essen, Germany that oversees companies operating in the businesses of mail order and internet shopping, department stores and tourism services. It was created in 1999 through the merger of Karstadt Warenhaus AG, which was founded in 1920, and Quelle...
in 2007.
On June 5, 2009 several media sources reported that the German justice minister Brigitte Zypries
Brigitte Zypries
Brigitte Zypries is a German politician. She was Federal Minister of Justice of Germany from 2002 to 2009. She is member of the Social Democratic Party of Germany .- Career :...
had recommended that the state prosecution service look into allegations of fraud against Middelhoff, based on the fact that he and his wife held shares of an investment fund that bought real estate from Arcandor and then allegedly leased it back it to Arcandor for unusually high rental fees.
Middelhoff has five children and lives with his family in Bielefeld
Bielefeld
Bielefeld is an independent city in the Ostwestfalen-Lippe Region in the north-east of North Rhine-Westphalia, Germany. With a population of 323,000, it is also the most populous city in the Regierungsbezirk Detmold...
.
External links
- Profile on Business Week.
- News about Middelhoff on New York Times
- Where Are They: Thomas Middelhoff - Wall Street JournalWho's Who
- Quotes