Although information started leaking last week, it wasn’t until this morning that the Penguin-Random House merger was made official:
Publisher Pearson says it has agreed a deal with German media group Bertelsmann to combine their Penguin and Random House businesses.
Under the terms of the deal, the two businesses will be run in a joint venture called Penguin Random House.
Bertelsmann will own 53% of the joint venture, while Pearson will own 47%.
First off, I think “Random House Penguin” is a much better name, mainly because of the ambiguity—is it a Random-House Penguin? or a Random House-Penguin? Makes the new über-publisher seem both literary and playful.
The tie-up between Penguin and Random House marks the first deal between the world’s big six publishers. The others are Hachette, HarperCollins, Macmillan and Simon & Schuster. It would bring together the publishers of the Fifty Shades series and Jamie Oliver’s cookbooks.
I keep reading this “Fifty Shades AND Jamie Oliver” line, and, to be honestly ignorant, I have no idea what it signifies. “This new MegaPublisher will publisher Super-Successful Book #1 PLUS Super-Successful Book #2!!!! ZOMG!!” Honestly, if you told me right now that Random House already published both of these, I’d totally buy it. It’s not like these are two random products suddenly being lumped into one administrative mess: “It’s going to combine Twilight and Gilbert Sorrentino!! Holy shitsnacks!”
Anyway, on to the real content: the creepy consolidation of two massive publishing entitles:
Pearson chief executive Marjorie Scardino, who is leaving the firm at the end of the year, said: “Penguin is a successful, highly-respected and much-loved part of Pearson. This combination with Random House… 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.”
In case you’re wondering, “be able to share a large part of their costs” equals “eliminate redundancies, especially in terms of personnel.” I hate to be the voice of cynicism, but all the “No jobs will be lost! We will rule the world together!” lip-service being paid to Penguin and RH employees has about a 99.9% chance of turning out to be utter and complete bullshit.
Based on recent results, combining the two firms will create a business with annual revenues of about £2.5bn and about one-quarter of both the UK and US book markets. [. . .]
“In the UK the market share will be around 27%, so they may have to divest themselves of some non-core interests,” said Philip Jones from the Bookseller magazine.
27%?! That’s fricking INSANE. And in no way can this be good for the book world. I don’t want to get into all that right now—I have sales calls to make, classes to teach—but putting so much power into the hands of one entity that produces a limited amount of books, yet will be defining culture, is fucked.
Which, for many, will bring to mind Amazon’s position in the marketplace . . .1 Speaking of Amazon:
“Amazon has 90% of the ebook market – if [the competition authorities] allowed that to happen, how can they block a merger that gives Penguin Random House 27%?”
And that’s really what this about, isn’t it? Making a company big enough to negotiate with Amazon in a way that will reap it shittons more money and profit. Great.
By random contrast, I just want to point out this WSJ article about the “semi-socialist” Bundesliga. (Referred to as a “soccer paradise.”) It’s a really interesting contrast between the free-spending, unmonitored Premiere League in the UK, and the less-profit motivated Bundesliga in Germany. Not only is the quality of the Bundesliga better—there are more teams with a legit chance to win the title, in contrast to the Chelsea, Manchester x 2, dominance in the Premiere League, or the Real Barcelona duo in La Liga—but the clubs are financially better off (Munich made $230 million last year, which exceeds the commercial revenues of Arsenal and Man United combined) AND more people are attending the matches.
What does this have to do with RHP? Nothing, really. But the idea that there is an alternative model to flat-out late-age hyper-charged capitalism—one that can be more successful in all the key areas—is a very captivating one.
1 This is a bit of a flawed analogy though. Amazon is a provider, a retail outlet that takes what is made elsewhere and dominates the chain from production to consumption. By contrast, Random House Penguin will control what is made available. This is a stark and horrifying difference. Amazon is predicated on the idea that “more of everything is better”—more books sold to more people in more formats equals more money—RHP is all about the production and sale of products that will benefit itself only. For all of the issues that people have with Amazon’s corporate practices, they are geared towards providing customers with what they want, when they want it, and at a reasonable price—it’s their tactics to achieving this that are circumspect. RHP will be about blockbusters and leveraging its enormous impact to restrict buying options, or at least direct customers into buying its products for the benefit of the corporate shareholders. In my mind—in which product diversity trumps everything, since the things I like are often not in line with mainstream anything—this RHP situation is a million times worse.
When I was about two-thirds of the way through Neuman’s very ambitious, very engrossing novel, Bromance Will Evans asked me what I thought the purpose the rapist had in this book. Not who the rapist was—something that’s held in suspense. . .
“At night Amarâq is coated with a darkness as viscous as unmixed colors, neither the fjord nor the mountains, valleys, lakes, or the river exist, there is only a black mass, a void that spreads across the landscape sporadically, pressing. . .
If you’ve been following any of the recent Antoine Volodine talk going around Three Percent—both on the blog or on the podcasts—and have heard his fans wax obsessive over all his alter author-egos, you’re probably starting to feel some Volodine. . .
Muireann Maguire’s Red Spectres is a stunning and engaging collection of eleven Russian gothic tales written by various authors during the early Soviet Era, all but two stories of which are featured in English for the first time ever. These. . .
“The small stone plaza was floating in the midday heat. The Christ of Elqui, kneeling on the ground, his gaze thrown back on high, the part in his hair dark under the Atacaman sun—he felt himself falling into an ecstasy.. . .
This slender, uncanny volume—the second, best-selling collection of stories by Russian author Ludmilla Petrushevskaya to appear in the U.S.—has already received considerable, well-deserved praise from many critics and high profile publications. Its seventeen short tales, averaging ten pages each, are. . .
The Urdu word basti refers to any space, intimate to worldly, and is often translated as “common place” or “a gathering place.” This book by Intizar Husain, who is widely regarded as one of the most important living Pakistani writers,. . .
The Whispering Muse, one of three books by Icelandic writer Sjón just published in North America, is nothing if not inventive. Stories within stories, shifting narration, leaps in time, and characters who transform from men to birds and back again—you’ve. . .
Luis Negrón’s debut collection Mundo Cruel is a journey through Puerto Rico’s gay world. Published in 2010, the book is already in its fifth Spanish edition. Here in the U.S., the collection has been published by Seven Stories Press and. . .
To have watched from one of your patios
the ancient stars
from the bank of shadow to have watched
the scattered lights
my ignorance has learned no names for
nor their places in constellations
to have heard the ring of. . .