Pearson To Merge Penguin With Bertelsmann’s Random House

Despite reported last-minute interest from News Corp., UK-based Pearson has agreed to merge its Penguin with Bertelsmann’s Random House. It creates the world’s leading consumer publisher. The deal, announced Monday morning, comes after the News Corp.-owned Sunday Times said Rupert Murdoch had indicated he would offer about $1.6B for Penguin. A combination of Penguin and News Corp.’s HarperCollins would have had an English-language book market share of 20%, and appeared favored by analysts, according to Reuters. The combined Penguin Random House will have about a 25%-30% share as the companies look to fend off competition in the e-book space. The joint venture will be 53%-owned by Bertelsmann and 47%-owned by Pearson and is subject to regulatory and other approvals. It is expected to close in the second half of 2013. Following is the press release from Pearson: (more…)

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