Andreas Schmidt, the head Bertelsmann's e-commerce division, resigned Wednesday to pursue "new entrepreneurial opportunities," the company said. The move was a surprise and marks another setback for the German media giant's Internet efforts. Schmidt played a leading, and often controversial, role in Bertelsmann's expansion into online music. He was a central figure in striking a deal with Napster, giving Bertelsmann an option to take a controlling stake in the music-swapping service. Schmidt also led the company's acquisitions of Web retailer CDNow and of online music locker Myplay for about $30m in May. The operations of Bertelsmann eCommerce Group (BeCG) will be controlled by Bertelsmann's DirectGroup. BeCG was a division of the DirectGroup run by Schmidt to develop Bertelsmann's online distribution businesses, which include BOL.com, its Barnes&Noble.com investment, CDNow, Myplay and its record club. BeMusic, Bertelsmann's online music company, which Schmidt also headed, will be run by Bertelsmann executive Stuart Goldfarb. BeMusic will launch its online and offline music distribution services in 2002. "Andreas Schmidt has expanded the position of Bertelsmann in the international e-commerce business with his creativity and commitment," Bertelsmann chief executive Thomas Middelhoff said in a statement. "And for that we are grateful." See the MP3 News Section for the latest on everything from MP3 players to Napster and the other music swapping services. Have your say instantly, and see what others have said. Click on the TalkBack button and go to the Napster Debate. Let the editors know what you think in the Mailroom. And read other letters.