Book giants confirm global merger
"They HAVE to call the merger of Random House and Penguin 'Random Penguin'. They just have to."Featured comment
Book publishers Penguin and Random House confirmed they will merge to form the world’s largest book publishing company.
German media company Bertelsmann and Britain’s Pearson Group say their book subsidiaries will have a stronger position in a market that is in turmoil with the impact of e-books on traditional publishing.
Under the plan, Bertelsmann will obtain 53% of the shares in the joint company, to be named Penguin Random House, with Pearson owning 47%.
Both companies are represented in New Zealand, with operations based on Auckland’s North Shore.
If the competition authorities approve the merger, the deal will be completed during the second half of 2013, the companies say.
Markus Dohle, head of Random House, would become the joint company's CEO, with John Makinson of Penguin serving as chairman of the board.