BERLIN (AP) — Pearson PLC has confirmed that it will merge
its Penguin Books division with Random House, which is owned by German
media company Bertelsmann, in a deal that will create the world’s
largest trade publisher.
Pearson says Monday that Bertelsmann
would own a controlling 53 percent share of the joint venture, which
will be known as Penguin Random House. Bertelsmann would keep full
control of its trade publishing business in Germany and Pearson would
retain rights to use the Penguin brand in education.
Random House
worldwide CEO Markus Dohle will be CEO of the new group while Penguin’s
CEO John Makinson will be the chairman of its new board of directors.
The closing of the deal is scheduled to take place in the second half of 2013
following regulatory approval.
Reports
have also suggested that News Corp. was interesting in making a 1
billion pounds ($1.6 billion) cash bid for Penguin. Pearson meanwhile
reported that operating profit in the first nine months of the year fell
5 percent although revenue increased by 5 percent.
Copyright 2012 The Associated Press.
BERLIN (AP) — Pearson PLC has confirmed that it will merge
its Penguin Books division with Random House, which is owned by German
media company Bertelsmann, in a deal that will create the world’s
largest trade publisher.
Pearson says Monday that Bertelsmann
would own a controlling 53 percent share of the joint venture, which
will be known as Penguin Random House. Bertelsmann would keep full
control of its trade publishing business in Germany and Pearson would
retain rights to use the Penguin brand in education.
Random House
worldwide CEO Markus Dohle will be CEO of the new group while Penguin’s
CEO John Makinson will be the chairman of its new board of directors.
The closing of the deal is scheduled to take place in the second half of 2013
following regulatory approval.
Reports
have also suggested that News Corp. was interesting in making a 1
billion pounds ($1.6 billion) cash bid for Penguin. Pearson meanwhile
reported that operating profit in the first nine months of the year fell
5 percent although revenue increased by 5 percent.
Copyright 2012 The Associated Press.