Next to head the company was Johannes Mohn, son-in-law of Heinrich. The company's growth slowed during this period and the focus was redirected to theological subjects. In 1910 he introduced paid vacation to the company. By 1921, when he turned control of the company over to his son Heinrich, the company had grown to 85 people.

Under the leadership of Heinrich Bertelsmann, the company experienced rapid growth and by 1939, the publishing house had grown to employ 400 people. New marketing channels were added as the readership became more mainstream in the late 1920's. On the verge of World War II, the company moved from classical literature and fiction to include books with militaristic themes and eventually published books with nationalistic, racial and anti-Semitic content. The publisher insured its survival for most of the war by linking itself with the Nationalis

The smallest division in terms of revenue in 2004 was Random House. It is made up of Ballantine (Ballantine Books, Ballantine Reader's Circle, Del Rey, Del Rey/LucasBooks, Fawcett, Ivy, One World and Wellspring), Bantam Dell Publishing Group (Bantam Hardcover, Bantam Mass Market, Bantam Trade Paperbacks, Crimeline, Delacorte Press, Dell, Delta, Domain, DTP, Fanfare, Island, Spectra and the Dial Press), Crown Publishing Group (Bell Tower, Clarkson Potter, Crown Business, Crown Publishers Inc., Harmony Books, Prima, Shaye Areheart Books, and Three Rivers Press), Doubleday Broadway Publishing Group (Broadway Books, Currency, Doubleday, Doubleday Image, Doubleday Religious Publishing, Main Street Books, Nan A. Talese and Harlem Moon), Knopf Publishing Group (Alfred A. Knopf, Anchor, Everyman's Library, Pantheon Books, Schocken Books and Vintage), Random House Audio Publishing Group (Villard Books, the Modern Library, RH Trade Paperbacks and Striver's Row Books), Random House Children's Books (Dell/Delacorte/Dell Young Reader's Group, Alfred A. Knopf, Bantam, Crown, David Fickling Books, Delacorte Press, Dell Dragonfly, Dell Laurel-Leaf, Dell Yearling Books, Doubleday, and Wendy Lamb Books), Random House Diversified Publishing Group (RH Value Publishing), Random House Information Group (Fodor's Travel Publications, Living Language, Prima Games, Princeton Review, RH Espanol, RH Puzzles and Games, and RH Reference Publishing) and Waterbrook Press (Shaw Books and Fisherman Bible Study Guides). It accounted for about 10% of revenues, but was second in terms of growth at 2.8%. To Americans, this division is the most well-known of the Bertelsmann holdings. Interestingly, one of the major factors in the profitability of this division is the popularity of a novel by Dan Brown, "The Da Vinci Code". It is the best selling novel in company history.

After the war, the publisher was rebuilt by the fifth generation to lead Bertelsmann, Reinhart Hohn, whose influence continues to the present. He took the company from a medium-size printing company to a media conglomerate. In 1950 he established the Reader's Circle, which bypassed the traditional marketing channels and allowed books to go directly to the reader. Within a year, it had 100,000 members and by 1954 membership had reached 1,000,000. The LP label Ariola Records was founded in 1958 which signaled the compan

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