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Random House and Penguin Group to create Penguin Random House

Staff writer ▼ | October 29, 2012
Publishing companies Random House and Penguin Group are to be combined in a single unit, said their owners Bertelsmann and Pearson. Two of the biggest English-language publishers are creating a publishing giant.
Penguin Random House
Penguin Random HousePublishing companies Random House and Penguin Group are to be combined in a single unit, said their owners Bertelsmann and Pearson. Two of the biggest English-language publishers are creating a publishing giant.


The closing of the transaction is scheduled to take place in the second half of 2013, following regulatory approval; Bertelsmann will own 53 percent and Pearson 47 percent.

Upon closing, Markus Dohle, Chairman and Chief Executive Officer of Random House worldwide, will be CEO of the new group. John Makinson, Chairman and CEO of Penguin, will become Chairman of the Board of Directors. Bertelsmann will appoint five representatives to the group’s Board of Directors, Pearson four. The new name will be Penguin Random House.

The new publishing group will include all the publishing divisions and imprints of Random House and Penguin in the United States, Canada, the United Kingdom, Australia, New Zealand, India, South Africa, as well as Penguin’s publishing company in China, and Random House’s Spanish-language publishing operations in Spain and Latin America. Random House’s Munich-based German-language publishing company, Verlagsgruppe Random House, will not be part of the Group and will remain at Bertelsmann.

Bertelsmann Thomas RabeBertelsmann Chairman & CEO Thomas Rabe says: "With this planned combination, Bertelsmann and Pearson create the best course for the future of our world-renowned trade-book publishers, Random House and Penguin, by enabling them to publish even more effectively across traditional and emerging formats and distribution channels. It will build on our publishing tradition, offering an extraordinary diversity of publishing opportunities for authors, agents, booksellers, and readers, together with unequalled support and resources."

Pearson CEO Marjorie ScardinoMarjorie Scardino, chief executive of Pearson, said: "Penguin is a successful, highly-respected and much-loved part of Pearson. This combination with Random House – a company with an almost perfect match of Penguin’s culture, standards and commitment to publishing excellence – will greatly enhance its fortunes and its opportunities. 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."


 

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