The deal is closed: it's Penguin Random House

[flyingtoastr Scribe]

Given the size and marketshare these two companies have in the United States, I'm not sure I see this getting through regulators without some hefty strings attached.

[5ivedom]

Really?

Given how things are changing and the rise of Amazon and B&N and ebooks. Do you really think there will be DOJ concerns?

[frantastk]

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Doug_Pardee wrote:

And here everyone was hoping for a more creative name. Ah well.

http://www.publishersweekly.com/pw/by-topic/industry-news/industry-deals/article/54536-random-house-...

As rumored, Random House is indeed the controlling partner (53% vs. Penguin's 47%). This is going to make the DoJ lawsuit messier. Random House isn't a defendant and nobody's suggested that it was involved in the collusion, having switched to Agency model + Required Ebook Pricing + Most Favored Nation almost a year after the other five publishing houses did. Consequently, Random House won't be "settling" anything.

While Penguin Random House might be compelled to pay restitution for the effects of Penguin's misconduct if the court finds for the DoJ, restrictions on the terms of future contracts probably won't be able to be imposed.

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Darn it. I was hoping for the Random Penguin House. 

[keriflur]

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frantastk wrote:

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Doug_Pardee wrote:

And here everyone was hoping for a more creative name. Ah well.

http://www.publishersweekly.com/pw/by-topic/industry-news/industry-deals/article/54536-random-house-...

As rumored, Random House is indeed the controlling partner (53% vs. Penguin's 47%). This is going to make the DoJ lawsuit messier. Random House isn't a defendant and nobody's suggested that it was involved in the collusion, having switched to Agency model + Required Ebook Pricing + Most Favored Nation almost a year after the other five publishing houses did. Consequently, Random House won't be "settling" anything.

While Penguin Random House might be compelled to pay restitution for the effects of Penguin's misconduct if the court finds for the DoJ, restrictions on the terms of future contracts probably won't be able to be imposed.

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Darn it. I was hoping for the Random Penguin House. 

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I'm fairly certain everyone will still call it that.

[flyingtoastr Scribe]

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5ivedom wrote:

Really?

Given how things are changing and the rise of Amazon and B&N and ebooks. Do you really think there will be DOJ concerns?

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I'm sure there will be. Though the DOJ seems to have little interest in Amazon using fairly underhanded tactics to compete with the publishers and retailers, I'm sure they'll raise some objections to a single company controlling 30%+ of the printed word in the country.

I don't think they'll block it per say, but perhaps require some extra oversight or outreach (library funding or something) as a show of goodwill before they allow the merger to go through.

[Omnigeek]

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5ivedom wrote:

Really?

Given how things are changing and the rise of Amazon and B&N and ebooks. Do you really think there will be DOJ concerns?

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I think the current leadership of DOJ can't help themselves but throw in "concerns" to slow the merger regardless of the merits of those concerns.  Strict reading of the law(s) has not been an overriding concern for the past few years.

[deesy58]

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Omnigeek wrote:

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5ivedom wrote:

Really?

Given how things are changing and the rise of Amazon and B&N and ebooks. Do you really think there will be DOJ concerns?

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I think the current leadership of DOJ can't help themselves but throw in "concerns" to slow the merger regardless of the merits of those concerns.  Strict reading of the law(s) has not been an overriding concern for the past few years.

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In general, do you believe that the mergers of smalller businesses into larger ones with more marker power has been good for consumers?  If so, can you cite some examples? 

[Doug_Pardee Distinguished Bibliophile]

Now The Wall Street Journal is reporting that News Corp is in talks with CBS to merge Simon & Schuster into HarperCollins.

Oddly, WSJ's pie chart of publishing-house market shares doesn't break out Macmillan.

[5ivedom]

Wow. Interesting news Doug.

I guess it was inevitable. With the landscape changing so much and so many challenges for Publishers.

[ProfReader]

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Doug_Pardee wrote:

Now The Wall Street Journal is reporting that News Corp is in talks with CBS to merge Simon & Schuster into HarperCollins.

Oddly, WSJ's pie chart of publishing-house market shares doesn't break out Macmillan.

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well that sounds like bad news for overdrive.