Largest publisher: Random House, Penguin merge
Two of English language’s largest publishing labels are coming
together in a partnership to create the world’s biggest consumer
publisher, with significant implications for India.
UK-based Penguin, owned by the Pearson Group and said to be one of the world’s most respected publishers, and Random House, part of the Bertelsmann group, announced on Monday a joint venture to take on the challenges of digital technologies that have spawned e-books and online stores that offer cut-price deals.
Both have sizeable operations in India, covering a host of authors, with large-sized editorial staff and matching business ambitions.
The JV, Penguin Random House, in which the Germanybased Bertelsmann with headquarters in New York will own 53% and London-based Pearson the remainder, apparently pipped a bid by media baron Rupert Murdoch’s News Corp, whose stable includes rival Harper Collins.
At 1.5 billion pounds (Rs12,979 crore), Random House’s sales are more than that of Penguin, whose sales are around 1 billion pounds. However, in India, Penguin has larger operations, with authors including former president APJ Abdul Kalam, Arundhati Roy and the Dalai Lama under its belt, thanks to its 25-year-old operations in the country. Although it arrived in India only in 2005, Random House’s big names include Salman Rushdie, Deepak Chopra and EL James, author of this year’s bestseller, Fifty Shades of Grey.
UK-based Penguin, owned by the Pearson Group and said to be one of the world’s most respected publishers, and Random House, part of the Bertelsmann group, announced on Monday a joint venture to take on the challenges of digital technologies that have spawned e-books and online stores that offer cut-price deals.
Both have sizeable operations in India, covering a host of authors, with large-sized editorial staff and matching business ambitions.
The JV, Penguin Random House, in which the Germanybased Bertelsmann with headquarters in New York will own 53% and London-based Pearson the remainder, apparently pipped a bid by media baron Rupert Murdoch’s News Corp, whose stable includes rival Harper Collins.
At 1.5 billion pounds (Rs12,979 crore), Random House’s sales are more than that of Penguin, whose sales are around 1 billion pounds. However, in India, Penguin has larger operations, with authors including former president APJ Abdul Kalam, Arundhati Roy and the Dalai Lama under its belt, thanks to its 25-year-old operations in the country. Although it arrived in India only in 2005, Random House’s big names include Salman Rushdie, Deepak Chopra and EL James, author of this year’s bestseller, Fifty Shades of Grey.
“Between us, we make two of the strongest players in this market.
The JV company will sell books more aggressively than before and we will
certainly have far more resources for developing consumer publishing
platforms, channels in India,” said Andrew Sullivan, Penguin India’s
CEO. Gaurav Shrinagesh, managing director, Random House India, said it
was too early to comment on the ramifications of the JV for India, with
regulatory approvals yet to come.
“Till then, the two publishers will continue to function as distinct entities, as usual, globally and in India,” he said.
Sullivan assured Penguin’s authors in a memo that their contracts and editors were safe.
The JV comes to Penguin as its marks its Silver Jubilee year in India. Penguin India’s publisher is Chiki Sarkar, who had hopped over last year from her job as editor-in-chief at Random House India.
“Together, the two publishers will be able to share a large part of their costs, to invest more for their author and reader constituencies and to be more adventurous in trying new models in this exciting fast-moving world of digita books and digital readers,” Pearson chief executive Marjorie Scardino said.
Bertelsmann, Europe’s biggest media group, like Pearson, is in the middle of an overhaul to adapt to changing times.
“Till then, the two publishers will continue to function as distinct entities, as usual, globally and in India,” he said.
Sullivan assured Penguin’s authors in a memo that their contracts and editors were safe.
The JV comes to Penguin as its marks its Silver Jubilee year in India. Penguin India’s publisher is Chiki Sarkar, who had hopped over last year from her job as editor-in-chief at Random House India.
“Together, the two publishers will be able to share a large part of their costs, to invest more for their author and reader constituencies and to be more adventurous in trying new models in this exciting fast-moving world of digita books and digital readers,” Pearson chief executive Marjorie Scardino said.
Bertelsmann, Europe’s biggest media group, like Pearson, is in the middle of an overhaul to adapt to changing times.
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