Two top executives at Bertelsmann Music Group (BMG) are resigning, days after the company joined forces with Napster.
Chairman Michael Dornemann and Strauss Zelnick, president and CEO of Bertelsmann subsidiary, BMG Entertainment, will both resign. Dornemann will relinquish his board seat in January, and his managerial job in June upon his own request, Bertelsmann said. Zelnick will leave his job by January.
Bertelsmann is reorganizing itself into three strategic business units, one of which will be called "content." This unit will lump BMG in with Bertelsmann subsidiaries Random House, Gruner und Jahr, RTL and Bertelsmann Springer.
Last Tuesday, Bertelsmann and Napster announced plans to develop a membership-based music sharing system, after which BMG will drop its copyright-infringement lawsuit against Napster and make its music catalogue available to online music-sharing network.