Two of the largest book publishers, Penguin, home to Patricia Cornwell and Nora Roberts, and Random House, which publishes E.L. James and George R.R. Martin -- are planning to merge into the world's larest publisher in a deal announced Monday.If approved by government regulators, the merger would combine the two publishers' parent companies, the British-owned Pearson and the German-owned Bertelsmann. The merger also heads off a bid by Rupert Murdoch's News Corp., which owns publisher HarperCollins, to buy Penguin for $1.6 billion.
The new joint venture would publish about 25% of all books in the U.S. But what the consolidation means for readers and authors isn't as clear.Under the terms of the agreement, Penguin and Random House will combine their businesses in a joint venture named Penguin Random House. Bertelsmann will own 53%, Pearson 47%.John Makinson, currently chairman and chief executive of Penguin, will be chairman of the new firm; Markus Dohle, currently chief executive of Random House, will be its chief executive.
