Random House and Penguin Confirm Merger

Last week it was revealed that Random House and Penguin were in talks about a possible merger and today it was confirmed that two of the world’s largest publishing houses were now to become one, and would now be known as, Random House/Penguin

The merging of the two companies will make the world’s largest publishing company, agreeing to a £2.3 billion deal. With Pearson, Penguin’s parent’s company owning 47% of the venture whilst Bertelsmann owner of Random House will have a 53% stake.

The merger comes at a critical time for the two companies, as well as for the wider book publishing industry, which have spent the last decade in a slow decline, with the introduction of eBooks and websites such as Amazon and Apple competing against them, staking their claim over the more traditional business. The merger is seen as a response to the challenge of the rapidly changing market, with online retailer Amazon now selling 114 ebooks for every 100 books printed.

A joint statement released from the two companies places heavy emphasis on digital publishing and bookselling, which it calls a “dramatic industry transformation”.

The newly created joint venture will bring together Charles Dickens with writers like 50 Shades of Grey author EL James.

It seems that there are exciting times ahead for the publishing world, as we wait and see what the Random House/Penguin, has in store for us book lovers!