Random House and Penguin Merger Creates Global Giant By ERIC PFANNER and AMY CHOZICK
Older news but worth reading!
The announcement on Monday that Random House and Penguin would merge narrows the
John Makinson, the chief executive of Penguin who will serve as chairman of the new company, said that with consolidation inevitable, “we decided it was better to get in early rather than be a follower.”
In announcing the agreement, the European owners of Random House and Penguin —Bertelsmann and Pearson, respectively — said Bertelsmann would control 53 percent of the combined entity and Pearson 47 percent. In a statement, Bertelsmann said the deal would most likely conclude in the second half of 2013, after approval from regulators.
The merger will create the largest consumer book publisher in the world, with a global market share of more than 25 percent and a book list that includes contemporary best-sellers like Random House’s “Fifty Shades of Grey” and Penguin’s backlist of classics from authors like George Orwell.
The deal, analysts said, would give the new company, to be called Penguin Random House, greater scale to deal with the challenges arising from the growth of electronic books and the power of Internet retailers. Publishers are increasingly worried about the leverage wielded by Internet giants like Google, Apple and, especially, Amazon. These companies have vast resources to invest in new technology, like digital sales platforms, and the size to let them negotiate better terms on prices. READ more at: http://www.nytimes.com/2012/10/30/business/global/random-house-and-penguin-to-be-combined.html?pagewanted=all&_r=1&