Random House and Penguin Merger Talks
A spokesperson for Pearson, the British media company that owns publisher Penguin, has confirmed that Pearson “is discussing with Bertelsmann a possible combination of Penguin and Random House. The two companies have not reached agreement and there is no certainty that the discussions will lead to a transaction.” German conglomerate Bertelsmann has declined to comment, referring questioners to the Pearson statement.
A combined Random House and Penguin would account for almost a quarter of the book market in the US, and would generate around $3 billion in revenue annually, based on 2011 earnings.
For more details, see articles in Bloomberg News and The New York Times.