PEARSON and German media giant Bertelsmann said this morning that they have completed the joint venture between Penguin and Random House to create to create a new publishing giant, Penguin Random House.
The deal, which was first announced in October last year, will see Bertelsmann owning 53 per cent in the newly formed company Pearson owning the remaining 47 per cent stake.
Penguin Random House will have operations in the US, Canada, UK, India, South Africa, Australia, New Zealand, Spain, Mexico, Argentina, Uruguay, Colombia and Chile and employ over 10,000 people.
John Makinson is today stepping down from the Pearson board to take up his new full-time responsibilities as chairman of Penguin Random House.
Random House chief executive Markus Dohle will take over as head of the new company and Coram Williams will become chief financial officer.
Commenting, chief executive of Pearson, John Fallon, said:
“Penguin has been at the heart of Pearson for more than four decades and is deeply intertwined with our culture and operations. This combination creates a clear world leader with a strong platform for continued creative and commercial success in a rapidly-changing consumer publishing industry. This will be an excellent business and we will be active long-term partners in it.”
In 2012, Penguin Random House had pro forma revenues of £2.6bn and an operating profit of £346m.