Bertelsmann Completes Its Share Increase at Penguin Random House to 75 Percent

The international media, services and education company Bertelsmann now owns a strategic three-quarters majority of Penguin Random House. The two shareholders of the world’s biggest trade publishing group – Bertelsmann, and the British global education company Pearson – agreed on a new ownership structure in July: Now that the transaction has closed, Bertelsmann holds 75 percent of the book group; Pearson 25 percent. Penguin Random House’s enterprise value was set at $3.55 billion for the purposes of the share increase.

Thomas Rabe, Chairman and CEO of Bertelsmann, said: “Bertelsmann has the widest range of creative products of any company worldwide – and the book business has served as a core part of our identity for more than 180 years. Accordingly, today marks a strategic milestone for us in several respects. First, the three-quarters majority in Penguin Random House will increase the profit share of Bertelsmann’s shareholders by more than 60 million euros. Second, we now have the ideal prerequisites for developing Penguin Random House – already number one in the book world – with a view to the long term and in continuity. And third, we now own strategic majorities in all of Bertelsmann’s corporate divisions: 75 percent of RTL Group and Penguin Random House; 100 percent of all other divisions.”

The completion of the share increase strengthens Bertelsmann’s governance rights at Penguin Random House. Thomas Rabe will be the new Chairman of the book publishing group’s Board of Directors as of January 1, 2018 and Bertelsmann will have four representatives on the Board, Pearson two.

The independence of the Group’s more than 250 individual publishers remains unaffected by the share increase. Separately, Verlagsgruppe Random House in Germany is still fully controlled by Bertelsmann. Markus Dohle, a member of the Bertelsmann Executive Board and CEO of Penguin Random House since the start of the merger, will continue to head the company.

Markus Dohle said: “Today is a good day for Penguin Random House. The assured commitment of our two founding shareholders guarantees stability and allows us to continue to concentrate fully on the creative work of our authors. We will continue to publish the very best books and stories for our readers. Both shareholders are fully supportive of this goal.”
https://www.bertelsmann.com/news-and-media/news/bertelsmann-completes-its-share-increase-at-penguin-random-house-to-75-percent.jsp?atn=6249&abp=6249,8182,

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