Two of the publishing world's biggest players have agreed to a merger that will create the largest publishing house in existence.
Bertelsmann, owner of Random House, and Pearson, owner of Penguin, agreed Monday to combine the two houses to create the largest consumer book publisher in the world, reported the New York Times. The deal would allow the German and British companies, respectively, to better tackle the challenges of publishing in the era of e-books.
The joining of Random House and Penguin will bring together nearly one forth of global English-language consumer book sales, reported the Wall Street Journal. Random House would bring E.L. James, author of the best selling "Fifty Shades of Grey", and Penguin would bring an impressive list of classics, including George Orwell, author of the dystopian thriller "1984".
In the deal, Bertelsmann will have a 53 percent stake and Pearson will have a 47 percent stake, reported the Wall Street Journal, but it must first pass antitrust regulations. Bertelsmann said it expects the deal to close in late 2013.