Pearson, the media and financial corporation that happens to be the parent company of Penguin Publishing, has confirmed they are in talks with Bertelsmann (parent company of Random House), to acquire Random House Publishing. No official announcement has been made, since negotiations are still in process, but Pearson did confirm the rumors that have been swirling around the purchase.
In a statement from Pearson: “Pearson confirms that it 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.”
Financial Times, which is owned by Pearson said in a recent article: “Bertelsmann and Pearson are in talks about combining their publishing divisions, Random House and Penguin, to create a global market leader in response to the strategic challenges of the fast-growing ebook business. Discussions have focused on a merger in which Bertelsmann would have a stake of more than 50 per cent, according to three people familiar with the negotiations, who warned that talks could still fall apart.”
The merger of these two publishing giants could lead to a significant restructuring at both companies. We will post updates when they are made public.