 
 
The biggest publishing industry news going
        around is the merger between Penguin and Random House. One is a
        grand old dame,
        a queen of the industry, old money, and the other a brash young
        united states
        of ‘once known but now anonymous’ publishers – think Fifty
        Shades.
        (Interestingly, Rupert Murdock apparently offered to buy Penguin
        for GBP 1
        billion, but was rebuffed. The queen was not willing to stoop
        that low?)
        Fittingly, the new entity is called Penguin Random House, so the
        monarch gets to
        keep her name, even if not the power. Various sources say
        that it could take
        up to a year (earliest mid-2013) for final approval and that, in
        the meantime,
        it’s business as usual.
Still, the aftershocks
        running through the
        industry will take a while to settle, if at all. Together, the
        new group will
        control 25% of the market, which might be scary, but is not; they
        controlled it
        anyway. "From the perspective of a reader, author or agent there
        won't be
        very much change in the day-to-day operations of the companies,"
        says John
        Makinson, the current CEO of Penguin and the future chairman of
        the new
        company. The CEO of the new company will be Markus Dohle ,
        currently chief
        executive of Random House.
That this is a reaction to
        new realities in
        the book industry is a no brainer. But which reality,
        specifically? It is
        easier to understand what Random House would want from Penguin;
        their back list
        and classics are to die for. Besides, they also do their own
        distribution. In
        Malaysia, distribution of Penguin books used to be handled by
        STP (later by Times,
        later still by Pansing) before the parent company set up their
        own warehouse
        and operations here. (Pearson also distributes Faber.) It’s
        unclear if
        distribution will be an expertise Penguin will bring to the
        merger.
What does Penguin get from
        the merger?
        Protection? Penguin US was one of the two publishers (the other
        being
        Macmillan) that declined to settle the civil antitrust case
        brought by the Department of Justice (DOJ).
        (Random House was not named in the action.) Apple has been
        quoted as saying
        that Amazon is playing the DOJ like a violin. So will one and
        one make three?
Despite all the usual
        platitudes following
        the merger, one wonders if something more serious is afoot?  The merger will make
        Penguin Random House the
        largest book publisher in the world. 
        Large enough to take on Amazon?  Large enough not to have
        to live in terror of
        Amazon’s control over that ‘buy’ button?  Large enough to set up
a distribution network
        to fight Tyrannosaurus Rex on its own turf?
It will certainly be good
        for the industry
        if that first beast is kept under control, but having two predatory
        beasts roaming
        the earth is not very comforting either. It's like Jurassic Park? I’m not
        sure if it's
        scary or comforting. I prefer a world with no superpowers, but
        who’s listening?

 
 
 
 













