Penguin and Random House Are Now One And The Same

Penguin and Random House Merge

It's not Halloween yet, but IT'S ALIVE!!!!

You've read the headline well. Penguin and Random House have merged. I don't want to bore you with the details, but parent companies Pearson and Bertelsmann have agree to a share that would make Bertelsmann 53% owner, leaving 47% to Pearson. They will also share the nominations of their administrative board. But more interesting is the statement made by Pearson's CEO, Marjorie Scardino: 

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.

That statement, combined with the merger being done in the wake of a rumor that News Corp. was going to make an offer for Penguin, is a reflection of how much the publishing landscape has changed over the last few years. The rise of eBooks and Amazon as a publisher has changed the game drastically, and this one of the first major consequences. They stated they're looking to be more adventurous in this exciting, fast-moving world of digital books, so it couldn't be any clearer they're looking to adapt and eventually catch up to the retail juggernaut. It's good news for us. Customers are always the winners when it comes to corporate competition.

Image via the Hollywood Reporter

Benoît Lelièvre

News by Benoît Lelièvre

Benoît Lelièvre is twenty-nine years old and lives in Montreal,Canada. His fiction has been published in Needle Magazine, Crime Factory, Beat to a Pulp: Hardboiled, Shotgun Honey and The Flash Fiction Offensive, amongst others. When he's not furiously typing away, he's watching hockey, studying martial arts, consuming pop culture or kicking back with his better half and his dog. He blogs out of Dead End Follies, where he reviews books, movies and chronicles his existence.

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Comments

Dwayne's picture
Dwayne from Cincinnati, Ohio (suburbs) is reading books that rotate to often to keep this updated October 29, 2012 - 9:28am

So do we start saying the Big 5 or consider Amazon the 6th?

leahzero's picture
leahzero from Chicago is reading everything Fitzgerald wrote. October 29, 2012 - 9:47am

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.

lol. Let's spin this consolidation of choice as an expansion of choice!

Pearson bailed because there's no future in corporate publishing, unless you want to churn out celeb memoirs and smutfic-turned-erotica.

The FUD from all over the bookosphere tells the real story. No one's fooled, guys. We just didn't expect the titans to fall so fast.

rmatthewsimmons's picture
rmatthewsimmons from Salt Lake City, UT is reading I just put down 'A Game of Thrones' after 6 chapters....Couldn't do it. October 29, 2012 - 12:22pm

Putting all things publishing aside. Having gone through something similar with my last employer, just shy of ten years, I cannot say that getting bigger is better. Not only for those working in the trenches but for the consumer as well.

My impression, having experienced it first hand, as well as the perception I get from reading about other corporate mergers, is that in most of the cases something has to give. The name of the game is profits and usually the reason for something like this to happen is to increase that-despite what any good natured intentions voice from the heads of those companies.

I think there is a small chance that this could be beneficial to authors and consumers, but it would take an extreme act of faith within a culture not known for its charity.

 

GretelTrilogy