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| Penguin and Random House owners agree joint venture | Penguin and Random House owners agree joint venture |
| (35 minutes later) | |
| Publisher Pearson says it has agreed a deal with German media group Bertelsmann to combine their Penguin and Random House businesses. | 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 business will be run in a joint venture called Penguin Random House. | Under the terms of the deal, the two business will be run in a joint venture called Penguin Random House. |
| Bertelsmann will own 53% of the joint venture while Pearson will own 47%. | Bertelsmann will own 53% of the joint venture while Pearson will own 47%. |
| The two firms said last week that they were discussing a deal. Reports have also suggested News Corporation is planning a £1bn bid for Penguin. | The two firms said last week that they were discussing a deal. Reports have also suggested News Corporation is planning a £1bn bid for Penguin. |
| "Penguin is a successful, highly-respected and much-loved part of Pearson," said Marjorie Scardino, Pearson's chief executive, who is leaving the firm at the end of the year. "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." | |
| Based on recent results, combining the two firms will create a business with annual revenues of about £2.5bn. | |
| In 2011, Random House's revenues were 1.7bn euros (£1.5bn) with an operating profit of 185m euros. Meanwhile, Penguin recorded revenues of £1bn and a £111m operating profit. | |
| The joint venture is subject to regulatory approval, but the two firms hope the deal will be completed in the second half of 2013. |