Pearson and Bertelsmann in talks to merge Penguin and Random House publishing companies
Attention, book lovers: Penguin and Random House may soon become one book publishing company. The Associated Press is reporting that British publishing and education company Pearson PLC and German company Bertelsmann SE are discussing potentially merging the two publishing houses together.
Pearson released a statement today saying it "is discussing with Bertelsmann a possible combination of Penguin and Random House," but clarified that there is no guarantee that these discussions will lead to a deal. A source close to the talks tells The New York Times that, Bertelsmann would end up having control of more than 50 percent of the combined companies.
If the transaction goes through, Random House and Penguin together would have control of more than 20 percent of the United States book market. This move is likely being done to combat the e-book market and online retailers like Amazon and Apple, whose increasing sales are pressure on traditional publishing companies.
Like we said above, there's no guarantee that this deal will go through, but it certainly will shake things up in the publishing industry if it does.