Bertelsmann confirms that it will buy Time Inc's 50 pct stake in Bookspan UPDATE

FRANKFURT (Thomson Financial) - DirectGroup Bertelsmann is to buy out Time Inc's 50 pct stake in its book-club joint venture Bookspan, a Bertelsmann spokesman confirmed to Thomson Financial.

The spokesman declined to give precise financial details, but said the sum was in the lower hundreds of millions of US dollars.

Bookspan is to be integrated into BMG Columbia House, an operating unit of DirectGroup that markets music and DVDs direct to consumers in the United States and Canada.

'Bookspan is a good strategic fit for Bertelsmann and the synergies between Bookspan and DirectGroup's music and DVD club operations will benefit Bookspan, its customers and suppliers,' Time Inc CEO Ann Moore said in a written statement.

Earlier today, Wall Street Journal reported, citing sources, that Bertelsmann agreed to buy Time's stake in Bookspan for around 150 mln usd. [e-mail] kd/ic COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited