Bertelsmann $1 billion acquisition of 22% stake in Penguin Random House

11/7/2017
Private acquisition

$ 1 billion

Announced

11/7/2017


Overview:

  • Bertelsmann has acquired a further 22% stake in Penguin Random House (PRH) from Pearson for $1 billion.
  • Penguin Random House (PRH) is the world's biggest publisher and the deal values the company at £2.75 billion. The company was formed as a joint venture between Pearson and Bertelsmann in 2013.
  • Bertelsmann is a German media company and is already the majority shareholder in PRH.
  • The deal has come about partly due to Pearson's financial position, with the company issuing a number of recent profit warnings from its education arm.
  • Pearson has sold a number of it flagship businesses in recent years including The Economist and the Financial Times Group.
  • The deal leaves Pearson with a 25% stake and the company has an 18 month lock-in period before it can look at any further share sale, according to The Guardian.

Sam Duke - Editor

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