Culture Street

By Sophia Whitfield

Pearson and Bertelsmann have confirmed that Penguin and Random House have combined to form Penguin Random House. Pearson will merge its Penguin books division with Random House, owned by German company Bertelsmann.

Bertelsmann will control 53% share, while Pearson is left with 47%. Under the terms of the agreement neither party can sell shares for a three year period.

Random House has handsomely filled its coffers after the success of the Fifty Shades trilogy, while Penguin retains its link to the classics with a strong backlist including John Le Carre and Jack Kerouac.

Allen Lane famously founded Penguin in 1935 to provide high quality literature to the masses after he found himself waiting on a train station with nothing to read. Last night Penguin ended its 77 year reign as an independent.

Rupert Murdoch had an interest in purchasing Penguin which would have asserted his domination of publishing, News Corp currently owns HarperCollins, however it would seem he has been pipped at the post.

In a statement, the publishers said: "The combination brings together two of the world's leading English language publishers, with highly complementary skills and strengths. Random House is the leading English language publisher in the US and the UK, while Penguin is the world's most famous publishing brand and has a strong presence in fast-growing developing markets ...Ē

"In reviewing the long-term trends and considerable change affecting the consumer publishing industry, Pearson and Bertelsmann both concluded that the publishing and commercial success of Penguin and Random House can best be sustained and enhanced through a partnership with another major international publishing house."

The combined company, Penguin Random House, will control 26% of the global market. The deal will be consolidated in the second half of 2013.

As with all mergers staff at both Penguin and Random House must be in a state of flux. Letís hope this combined company does not mean the loss of valuable jobs in the publishing industry.

You Might Also Like

Books

One minute with Loretta Hill

Loretta Hill is a bestselling author who has drawn on her own outback engineering experiences of larrikins, red dust and steel-capped boots for her latest novel, The Girl in the...

On January 15, 2014

Books

See How Small by Scott Blackwood

By Sophia Whitfield

On January 12, 2015

Books

The Perfect Victim by Corrie Jackson

By Sophia Whitfield

On January 10, 2018
 

Books

The Novel Habits of Happiness by Alexander McCall Smith

By Sophia Whitfield

On April 14, 2015

Books

Controversy surrounds Navy SEAL's firsthand account of the mission that killed Osama bin Laden

This week in publishing awards have been announced, children's books celebrated and the publishing date confirmed for one very controversial book.

On August 24, 2012

Books

Kate Morton's The Lake House released this week

Since 2006, Kate Morton has sold over 10 million books across just four titles. She is published in 33 languages across 38 countries.

On October 19, 2015
 
Copyright © 2012 - 2018 Culture Street
Contact: info@culturestreet.com.au