BERTELSMANN AND PEARSON TO COMBINE BOOK BUSINESSES

     (The following press release from Bertelsmann was received by e-mail. It 
was not confirmed by the sender.) 
Bertelsmann and Pearson to Combine Book Businesses 
Thomas Rabe implements new Bertelsmann strategy in the book publishing 
business 
Bertelsmann to hold 53 percent of new publishing group, Pearson 47 percent 
Markus Dohle (Random House) appointed as CEO, John Makinson (Penguin) as 
Chairman of the Board of Directors 
Bertelsmann to appoint five representatives to the Board of Directors, 
Pearson four 
The international media groups Bertelsmann and Pearson announced today that 
they will combine the activities of their respective trade-book publishing 
companies, Random House and Penguin Group. Bertelsmann will own 53 percent, 
Pearson 47 percent. The closing of the transaction is scheduled to take place 
in the second half of 2013, following regulatory approval. 
The announcement of the combination was made today in Gütersloh, Germany by 
Thomas Rabe, Chairman and CEO of Bertelsmann, and in London by Marjorie 
Scardino, Chief Executive of Pearson. 
Upon closing, Markus Dohle, Chairman and Chief Executive Officer of Random 
House worldwide, will be CEO of the new group. John Makinson, Chairman and CEO 
of Penguin, will become Chairman of the Board of Directors. Additional senior 
executive appointments will be announced in due course. Bertelsmann will 
appoint five representatives to the group's Board of Directors, Pearson four. 
The new name will be Penguin Random House. Until the closing, the companies 
will maintain their current separate operations and continue conducting 
business independently. 
The new publishing group will include all the publishing divisions and imprints 
of Random House and Penguin in the United States, Canada, the United Kingdom, 
Australia, New Zealand, India, South Africa, as well as Penguin's publishing 
company in China, and Random House's Spanish-language publishing operations in 
Spain and Latin America. Random House's Munich-based German-language publishing 
company, Verlagsgruppe Random House, will not be part of the Group and will 
remain at Bertelsmann. In the new company, the publishing imprints of Random 
House and Penguin will continue to publish their books with the autonomy they 
presently enjoy, and retain their distinct editorial identities. 
Bertelsmann Chairman & CEO Thomas Rabe says: “With this planned combination, 
Bertelsmann and Pearson create the best course for the future of our 
world-renowned trade-book publishers, Random House and Penguin, by enabling 
them to publish even more effectively across traditional and emerging formats 
and distribution channels. It will build on our publishing tradition, offering 
an extraordinary diversity of publishing opportunities for authors, agents, 
booksellers, and readers, together with unequalled support and resources.” 
Mr. Rabe also observed, “Today's announcement is a milestone not only for 
Random House, but also for the entire Bertelsmann group, with its 177-year 
publishing history. Its significance for our business and for the cultural 
resonance of our book publishing operations worldwide is on a par with such 
momentous agreements as the takeover of Goldmann Verlag in 1977; the 
acquisition of a stake in Bantam Books, our first-ever U.S. investment, that 
same year; the purchase of Doubleday in 1986; and especially that of Random 
House in 1998. Each of these steps was aimed at increasing the breadth and 
quality of Bertelsmann's publishing operations, as our new company will.” 
For Bertelsmann, the planned combination also marks a significant step in the 
implementation of its four new strategic priorities under Thomas Rabe, which it 
recently adopted and announced: strengthening the core, digital transformation, 
the establishment of growth platforms, and the development of growth regions. 
The Chairman & CEO comments: “The combination of Random House and Penguin, 
first of all, significantly strengthens book publishing, one of our core 
businesses. Second, it advances the digital transformation on an even greater 
scale, and third, it increases our presence in the target growth markets 
Brazil, India and China.” 
Marjorie Scardino, chief executive of Pearson, said: “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. 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 digital books and digital readers.” 
Markus Dohle, Chairman & CEO of Random House, adds: “Our new company will bring 
together the publishing expertise, experience, and skill sets of two of the 
world's most successful, enduring trade book publishers. In doing so, we will 
create a publishing home that gives employees, authors, agents, and booksellers 
access to unprecedented resources. I deeply believe that the support and 
services that we will be able to offer, coupled with the creative and editorial 
independence that we will continue to maintain, will benefit everyone in the 
book publishing environment, especially our passionate readers from today's 
generation to the next.”
 
 
Press spacebar to pause and continue. Press esc to stop.