In a deal that had been months in the making, Pearson and Bertelsmann announced Monday morning that they have signed an agreement to form a joint venture that will combine the businesses of Random House and Penguin. The deal, which is expected to close in the second half of 2013, will make Penguin Group chairman John Makinson chairman of the newly named Penguin Random House company, while Random House chairman and CEO Markus Dohle will be CEO.
Under the terms of the agreement, Bertelsmann will own 53% of the joint venture and Pearson will own 47%. The joint venture will exclude Bertelsmann’s trade publishing business in Germany, and Pearson will retain rights to use the Penguin brand in education markets worldwide. Bertelsmann will nominate five directors to the board of Penguin Random House, and Pearson will nominate four.