Middelhoff leaves Bertelsmann after clash with board

Bertelsmann, the German media group, is replacing Thomas Middelhoff as its chief executive after a clash with family shareholders over strategy. Speculation in Germany last night suggested he was being lined up to become the new chief executive of Deutsche Telekom.

Bertelsmann, whose interests include the BMG record label and the broadcaster RTL, said Mr Middelhoff, 49, would be replaced by Gunter Thielen, head of Bertelsmann's media services division. Mr Thielen, 59, is also head of the Bertelsmann Foundation, which holds a majority stake in the business and is owned by the Mohn family.

There were "different views between the chief executive and the supervisory board over the future strategy of Bertelsmann", the company said of Mr Middelhoff's departure.

Meanwhile, Deutsche Telekom declined to comment on German media reports that it was lining up Mr Middelhoff as the long-term successor to its ousted chief executive, Ron Sommer. He departed after losing the backing of the German government, which still holds 43 per cent of the shares. Deutsche Telekom's stock has plunged as Mr Sommer piled up debts and losses, angering small investors ahead of Germany's national elections in September.

Mr Middelhoff was chief executive of Bertelsmann for four years and had been expected to steer the company towards a flotation in the next few years. The group's BMG music division had recently taken full control of Zomba, the independent record label which is home to Britney Spears and The Backstreet Boys. He also masterminded the group's deal with Napster, the online music swapping service.

Mr Middelhoff joins the growing ranks of media chiefs who have been forced out in an industry grappling with tumbling advertising revenues and failed acquisitions. This month alone, the media giant Vivendi Universal ousted its unpopular chief executive Jean-Marie Messier as it struggled with a huge debt pile. The chief operating officer of the American giant AOL Time Warner has also bowed out.

Mr Thielen is seen as a safe pair of hands who has been with Bertelsmann for more than 20 years. Until now he was running the group's media services division Arvato. Bertelsmann's chief financial officer, Siegfried Luther, was appointed deputy chief executive in the reshuffle.