Hubert Burda Media


Hubert Burda Media Holding is a German media group with headquarters in Offenburg. It originated as a small printing business, founded by Franz Burda Snr in Philippsburg, in 1903.
In 1986, the corporate group was divided up between Franz Jnr, Frieder and Hubert Burda. In the 1980s and 1990s, the company developed into a major corporation; it is now one of Germany's largest media companies. Its best-known media brands include the magazines Bunte and Superillu, the German edition of Playboy, the news magazine Focus, as well as HuffPost Germany, HolidayCheck and XING. The company also owned Immediate Media, a British magazine publishing company.

History

Founded as a printing company

From 1903, Franz Burda, the father of Franz Burda Sr and grandfather of Franz Burda Jr ran a small printing business in Philippsburg. The venture was largely unsuccessful, prompting Burda to start a new company in Offenburg, in 1908.
In 1927, the company produced Germany's first radio listings magazine, "Die Sürag",. Its name sounded like a short form of Süddeutscher Rundfunk. Its initial circulation was 3,000 copies. In 1929, Franz Burda Sr took over the business from his father, along with the editorial duties for Sürag. He expanded the business significantly. In the early 1930s, the magazine achieved a circulation of over 85,000, and the staff grew from three to roughly 100. A second and larger phase of growth began in 1934, with the acquisition and development of new printing operations and the conversion to gravure printing.

Business during the Nazi regime

In 1938 Franz Burda and partners acquired a major printing facility, Großdruckerei, Papiergroßhandlung und Papierwarenwerk Akademiestraße Gebrüder Bauer in Mannheim. It was one of the largest and most modern printing companies in the German Reich, with some 250 employees. Its owner Berthold Reiss and fellow shareholders were Jews, meaning that they were forced to sell the business under the "Aryanization" laws relating to all Jewish-owned businesses in Nazi Germany.
As a forced seller, Berthold Reiss was obliged to find a buyer for the firm or face the appropriation of its assets and his personal destitution. Reiss pitched unsuccessfully to several potential buyers before a mutual contact told him of Franz Burda's interest. At the time Burda did not have sufficient capital to buy the business outright, so he paired with Karl Fritz, owner of Südwestdruck. One of Fritz's contacts, Robert Wagner, had the high-level political and banking contacts necessary to approve the deal and secure finance for the acquisition.
After the acquisition, Burda invited Reiss to stay on at the company to help manage the transition of ownership. Reiss's son Hans would later write that the pair established a good working relationship, despite the circumstances of the acquisition, with Reiss mentoring Burda's transition to managing a much larger business and Burda enjoying the firm's more informal culture. Burda interjected on Reiss' behalf when the latter was interned as part of Kristallnacht. The Burda and Reiss families developed a friendship after 1945, with Hans Reiss contributing to later Burda projects.
Despite his cordial relationship with Reiss, Franz Burda was a member of the Nazi Party from 1938 onwards. In 1933 he declared that his company had no Jewish employees or shareholders, although, preceding this statement in Sürag, advertisers of the National Socialist program guides NS-Funk and Der Deutsche Sender had claimed Burda did employ Jews. In reality, Burda knowingly employed a Jewish woman and rejected calls for her dismissal; this may explain why the company was never designated a "model National Socialist company". Burda also intervened against the deportation of an employee's Jewish wife, which led to Burda being reported to the Gestapo. An unauthorised biography of the family, Die Burdas, characterised Franz's membership of the Nazi party as more financial expediency than political ideology. In later official hearings Franz was held to be a Mitläufer, referring to those who were not charged with Nazi crimes but whose involvement with the Party was such that they could not be wholly exonerated.
Franz's son Hubert went on to assume a significant role in the issue of German industrial reparations, for which he was decorated by a number of German Jewish interest groups, including the Ohel Jacob Medal award. The publishing company's history during the Third Reich was described by Salomon Korn, a former Vice President of the Central Council of Jews in Germany, as a "case study for coming generations as to the question of guilt and conscience, of entanglement and dealing with the burden of this legacy".
At the beginning of World War II, Burda had a staff of roughly 600 employees. In 1941, production of the magazine "Die Sürag" was curtailed due to the war, and instead the company printed maps for the High Command of the German Army and aerial photographs for the Luftwaffe, in multi-color gravure printing. The map of Cherkasy from the Cartographical Studio Dr. Franz Burda was considered the world's first multi-colour gravure printed map. The Mannheim plant was destroyed by bombing; its operations moved to Lahr-Dinglingen in 1943.

After World War II

In the aftermath of the war, Franz Burda Sr single-handedly reached an agreement to pay reparations to the survivors and descendants of the shareholders from the Mannheim Bauer Printing Press. The company Gebr. Bauer oHG was later deleted from the commercial register and subsequently run as a Burda company. From 1945, the company printed schoolbooks and postage stamps for the French occupation zone, as well as the French military newspaper "Revue d'Information". After Franz Burda Sr received the order from the French authorities to publish a magazine, the illustrated newspaper "Das Ufer", was first published in 1948, a precursor of the "Bunte", against the opposition of many French officers. The license for "Das Ufer" was issued under the name of a front woman. At that time, the French occupation forces still compiled the editorial section of the magazine.
Aenne Burda, the wife of Franz Burda Sr, built up the A. Burda fashion publishing house after the War. Its key publication, Burda Moden, a magazine for sewing patterns, was launched in 1950. Circulation grew rapidly from 100,000 at launch to roughly half a million copies. Aenne Burda developed into by far the largest customer of the printing operations of her husband, who had no authority in her company. She only granted a participating share to her children as limited partners. In 1954, Aenne Burda's company moved into new headquarters in Kestendamm in Offenburg, designed by the architect Egon Eiermann. From 1954/55, advertising for Burda publications was seen on the so-called "Burda Fleet", three Piper PA-18 airplanes with banners flying behind the tail.

Expansion through takeovers

The company built up its presence in the Bavarian capital of Munich, which in addition to Offenburg became the company's second headquarters. In 1961, the printing press in Offenburg was converted to modern rotogravure printing presses. the same year saw the inauguration of the 50m high Burda Tower, which became a symbol of the city. Already in the 1950s, a smokestack of the printing operations served as an observation point with an elevator and a terrace restaurant. In 1962, Burda acquired the majority of the Neue Verlags-Gesellschaft publishing company based in Karlsruhe, known for magazines such as "Freundin" and "Film Revue". At the end of the 1940s, Marie-Pierre Kœnig, Commander-in-chief of the French Army in Germany and Military Governor of the French Occupation Zone, was head of the publishing house. In 1953, Karl Fritz, who together with Burda had acquired the Bauer Printing Press in 1938, then purchased the Neue Verlags-Gesellschaft. In 1962, Burda bought the Bambi film prize. In 1963, Burda acquired the traditional "Frankfurter Illustrierte", which was also integrated into "Bunte". From then on, the publication was called "Bunte Münchner Frankfurter Illustrierte".

Hubert Burda joins the firm

In 1966, Hubert Burda joined the company. After he obtained a Ph.D. in Art History and completing various traineeships, Franz Burda initially put his son in charge of the Munich publishing house. The men's magazine "M", launched at the end of the 1960s with a million-DM advertising budget, was discontinued by Burda after 12 editions and extensive losses. In 1973, Franz Burda Sr largely retired from the business: he made his children, Franz Jr, Frieder and Hubert into managing shareholders. Franz Burda Jr was responsible for the printing operations, while Frieder handled finances and administration and Hubert managed publishing activities. Hubert also worked as editor for "Bunte", first as managing editor, advancing to editor-in-chief in 1976. Influenced by Andy Warhol, he led the evolution of the publication from a traditional magazine to a modern popular magazine. In 1983, the "Bunte" editorial staff moved from Offenburg to Munich, to the newly built headquarters of the Burda Verlag at Arabellapark, where the company still has an office.

Company Division

After numerous mergers and acquisitions, the printing and publishing operations evolved into a large corporate group, which was re-organized in 1986 and after the death of Franz Burda Sr. The brothers, Franz and Frieder, took over all affiliate shares, including those in US printing houses, German paper factories and Austrian media distribution. The most lucrative were the shares in the Berlin-based publisher Axel Springer, which distributed dividends in the millions. Burda had previously acquired a stake of 24.9% in Axel Springer, in 1983. Franz and Frieder bundled their shareholdings in F+F Burda KG based in Baden-Baden. Hubert Burda became the sole shareholder of Burda GmbH with headquarters in Offenburg, bundling all German printing and publishing activities. By separating the operating business from the shareholding in Axel Springer, the owners averted anti-trust issues. As a result, Franz Burda Jr and Frieder Burda were able to increase their equity into a blocking minority. In 1988, they suddenly sold their shares again to the heirs of Axel Springer, having sought a majority in Axel Springer alongside Leo Kirch; Hubert Burda challenged the legality of the transaction, asserting a preemptory right of purchase for the Springer shares. He lost the subsequent court case.