German media firm bookmarks fourth quarter for completion of $1bn Penguin Random House deal

 
William Turvill
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Pearson will reduce its stake in Penguin Random House to 25 per cent under the deal (Source: Getty)

Bertelsmann plans to close its $1bn (£777m) deal to increase its stake in Penguin Random House in the fourth quarter of this year.

The German media group updated investors on the deal, to buy a 22 per cent shareholding from FTSE 100 firm Pearson, as it reported its first-half results today.

In its results, Bertelsmann noted that Penguin Random House has recently secured the worldwide rights to two books being written by former US President Barack Obama and his wife, Michelle.

The book publisher has also been boosted by Into The Water, the second thriller by The Girl On The Train author Paula Hawkins, and an expansion in Spain and Latin America.

As part of the deal, Pearson’s stake in Penguin Random House will shrink and Bertelsmann’s will grow to 75 per cent.

Pearson, which used to own the Financial Times and a 50 per cent stake in the Economist, announced plans to sell down its stake in Penguin Random House in January.

Read more: Pearson slashes jobs and dividend as it battles on with restructuring

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