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Random House in merger talks with Penguin

There are scarce details about the deal but if it occurred it would create the largest book publisher in the world.

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A merger between Random House and Penguin would create the largest book publisher in the world. (John Macdougall/AFP/Getty Images)

Pearson and Bertelsmann, owners of Penguin and Random House respectively, are said to be in merger talks.

There are scarce details about the deal but if it occurred it would create the largest book publisher in the world.

"Pearson confirms that it is discussing with Bertelsmann a possible combination of Penguin and Random House," a company statement said, reported the BBC.

"The two companies have not reached agreement and there is no certainty that the discussions will lead to a transaction. A further announcement will be made if and when appropriate."

The Financial Times, which is owned by Pearson, broke the story today and said that the merger would likely include a more than 50 percent stake for Bertelsmann.

The merger comes during a period of severe strain on book publishers with the advent of smart phones, tablets and e-books, which is eroding their business model.

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http://www.globalpost.com/dispatch/news/business/121025/random-house-merger-talks-penguin