Penguin And Random House Make A Deal

The merger is the first between the six biggest publishing houses and should give Bertelsmann and Pearson more negotiating power with Amazon.

Penguin And Random House Make A Deal

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.

[Creative Commons Image by Flickr user Sirexkat]

About the author

My writing career has taken me all round the houses over the past decade and a half--from grumpy teens and hungover rock bands in the U.K., where I was born, via celebrity interviews, health, tech and fashion in Madrid and Paris, before returning to London, where I now live. For the past five years I've been writing about technology and innovation for U.S.

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