Entries in Bertelsmann (1)

Thursday
Oct252012

Random House Set to Merge With Penguin

Thanks to increased pressure from online rivals like Amazon.com and Barnes & Noble, among many others, two powerhouse publishers are merging in the hopes of shoring up their bottom lines amid the overall deterioration of the publishing industry. Penguin and Random House are in talks to join forces in what is purported to be a £2.4 billon deal. From The Telegraph:

Pearson, the listed media business which has owned Penguin since 1970, said on Thursday it is in talks with Bertelsmann, the German media giant which owns international publisher Random House, about combining the publishing assets. Bertelsmann would own more than half of the joint venture.

The negotiations come at a critical time for the companies, as well as for the wider book publishing industry which spent most of the last decade in major turmoil, as new online businesses like Amazon, Google and Apple tried to stake their claims on their traditional business.

Heavy discounting by online retailers and supermarkets has made it harder and harder for specialist book chains and independent booksellers to survive, leaving publishers with many fewer places to sell their products.

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