British publishing house Penguin and German media group Random House announced a 2.4 billion pound merger deal that will create the biggest book publisher in the world
London: Britain's Penguin Books and Germany's Random House, the world's two leading English language publishers have agreed to merge to create Penguin Random House, which would be the world's largest book publisher, reports PTI.
British publishing house Penguin and German media group Random House announced a 2.4 billion pound merger deal that will create the biggest book publisher in the world, BBC reported.
The new company would be run as a joint venture known as Penguin Random House, with the tie up expected to be completed in the second half of next year subject to regulatory approvals. The joint venture will exclude Bertelsmann's trade publishing business in Germany and Pearson will retain rights to use the Penguin brand in education markets worldwide.
While the German media giant Bertelsmann will own 53% of the joint venture, Pearson will own 47%.
The merger comes amid reports that Rupert Murdoch-run News Corp - which also owns Harper Collins - was bidding to make a substantial cash offer to takeover Penguin.
"The combination brings together two of the world's leading English language publishers, with highly complementary skills," a statement by Pearson said.
Based on recent results, combining the two firms will create a business with annual revenues of about 2.5 billion pounds.
In 2011, Random House's revenues were 1.7 billion euros with an operating profit of 185 million euros. Penguin recorded revenues of 1 billion pounds.
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