Penguin and Random House to merge

Deal will create the biggest book publisher ever seen, accounting for one in four books sold.
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The world's leading consumer publishing organisation will be born from the merger of Penguin and Random House.

Under the terms of the agreement, Penguin and Random House will combine their businesses in a newly created joint venture called Penguin Random House.

Bertelsmann will own 53 per cent of the venture and Pearson 47 per cent. It will exclude Bertelsmann's trade publishing business in Germany and Pearson will retain the rights to use the Penguin brand in education markets worldwide.

Bertelsmann will nominate five directors to the board, with Pearson nominating four.

"All of us who work in book publishing experience every day the breathtaking pace of change in our industry," said John Makinson, chairman and CEO of Penguin. "The partnership that we are announcing today will position Penguin Random House at the forefront of that change."

Markus Dohle, chairman and CEO of Random House, added: "Our new company will bring together the publishing expertise, experience and skills sets of two of the world's most successful, enduring trade book publishers."

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