Today Pearson confirmed that the publishing company is considering “a possible combination of Penguin and Random House.”
Pearson had this statement: “Pearson confirms that it is discussing with Bertelsmann a possible combination of Penguin and Random House. The two companies have not reached agreement and there is no certainty that the discussions will lead to a transaction. A further announcement will be made if and when appropriate.
Financial Times (a newspaper owned by Pearson) has a report from three anonymous sources today that Bertelsmann (the corporate parent of Random House) and Pearson (the corporate parent of Penguin) could unite their book publishing efforts.
Check it out (subscription only): “Bertelsmann and Pearson are in talks about combining their publishing divisions, Random House and Penguin, to create a global market leader in response to the strategic challenges of the fast-growing ebook business. Discussions have focused on a merger in which Bertelsmann would have a stake of more than 50 per cent, according to three people familiar with the negotiations, who warned that talks could still fall apart.”
Neither publisher responded to requests for comment in the story. The newspaper estimated that the two publishers combined could hold sway over one-fourth of the U.S. publishing market.
We also analyzed the news on the Morning Media Menu. Press play below to listen…