The tie-up between Penguin and Random House has been confirmed this morning. Penguin-Random House, as the joint venture will be known, is expected to give the two publishing houses, owned by Pearson and Bertelsmann, more oomph in the publishing world’s ongoing battle with Amazon.
The deal is split 53-47%, with the lion’s share going to Bertelsmann and, although subject to regulatory approval, is expected to complete in the second half of 2013. Marjorie Scardino, Pearson’s outgoing CEO, sees the merger as a win-win opportunity for readers. “Together, the two publishers will be able to share a large part of their costs, to invest more for their author and reader constituencies, and to be more adventurous in trying new models in this exciting, fast-moving world of digital books and digital readers,” she said.