Penguin Random House Merger Greenflagged

PUBLISHING giants Random House and Penguin have agreed a much talked about merger that creates the world’s largest consumer book publisher.

Random House owner Bertelsmann will take a 53% stake, Penguin’s owner Pearson a 47% stake in the newly created group, to be called Penguin Random House. Random House topper Markus Dohle will take over as CEO while John Mackinson, currently chairman and chief executive of Penguin, will step up to the position of chairman of the new joint venture, expected to come together in the second half of 2013.

Annual sales for Random House were $2.4 billion while Penguin sales topped $1.6 billion last year. Aim of the merger is to boost digital transformation.

 www.guardian.co.uk