Deal creates world's largest trade publisher
digital publishing models and high-growth emerging markets. They expect cost savings in warehousing, distribution, printing and central functions but also promised that the venture’s level of organic investment in authors and new product models would exceed the total investment of either one independently. For 2011, Random House reported revenues annual revenue of about $2.4 billion and operating profit of $258 million. Penguin had revenues of $1.6 billion and operating profit of $178 million. Deal requires both partners to hang on to their entire stake in the venture for at least three years. “Penguin is a successful, highly-respected and much-loved part of Pearson. This combination with Random House — a company with an almost perfect match of Penguin’s culture, standards and commitment to publishing excellence — will greatly enhance its fortunes and its opportunities,” said Pearson’s outgoing CEO Marjorie Scardino.
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