Pearson plc (NYSE: PSO) and Bertelsmann AG have closed the deal to combine their publishing companies, Penguin and Random House, respectively, into the largest consumer book publisher in the world, named Penguin Random House.
Both Pearson and Bertelsmann expect that combined company to have greater resources to invest in new digital publishing models and high-growth emerging markets.
Bertelsmann owns 53 percent of the joint venture, while Pearson owns 47 percent. The closing was announced July 1.
“This combination creates a clear world leader with a strong platform for continued creative and commercial success in a rapidly-changing consumer publishing industry,” says John Fallon, Pearson’s CEO.
The joint venture was announced in November.
Morgan Lewis & Bockius LLP served as Pearson’s legal counsel for the transaction.
For more on digital publishing, see "Barnes & Noble's Tablet Exit Seen Accelerating Nook Spinoff."