Penguin to merge with Random House
Quote from Pearson's ( owner of Penguin) chief executive, Marjorie Scardino: "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."
The CEO of Bertelsmann (owner of Random House) has also stressed that the main objective is the joint drive into digital publishing. Both groups have been complaining that the current marketing model of ebooks is insufficiently profitable.
Should prove a very interesting development.