Penguin and Random House Merge

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Two of the most renowned publishing brands in the world, Penguin and Random House, have announced a deal to join forces and form a new combined entity, Penguin Random House. The announcement on Penguin's website touted the alliance as a fitting match, citing a strong Random House presence in the established U.S. and U.K. markets. Penguin, for its part, offers exposure to developing markets.

The newly formed organization also expects to benefit from synergies including "shared resources such as warehousing, distribution, printing, and central functions," and will allow the company to expand more into digital publishing, an area with massive growth potential.

Penguin, which had sales of $1 billion last year, is a part of Pearson PLC (NYSE: PSO  ) ; Random House (revenues of $1.7 billion) is a division of Bertelsmann. Pearson will own 47% of the new venture and nominate four members to the board of directors, while Bertelsmann will own 53% of Penguin Random House and nominate five directors.

The deal is expected to complete in the second half of 2013. Five years after the deal is finished, either partner can require a Penguin Random House IPO.

John Divine has no positions in the stocks mentioned above. You can follow him on Twitter, @divinebizkid, and on Motley Fool CAPS, @TMFDivine. 

The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2083378, ~/Articles/ArticleHandler.aspx, 10/27/2016 10:29:56 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 hour ago Sponsored by:
DOW 18,169.68 -29.65 -0.16%
S&P 500 2,133.04 -6.39 -0.30%
NASD 5,215.97 -34.29 -0.65%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/27/2016 4:03 PM
PSO $9.03 Down -0.06 -0.66%
Pearson CAPS Rating: **