A publishing powerhouse

Could a merger between Penguin and Random House stop Amazon in its tracks?

After the FT reported that talks had been held between two of the world’s “big six” publishers, Penguin and Random House, an official statement has finally been made. Pearson, the UK-listed education specialist (and the world’s single largest book publisher), who owns both Penguin and the FT, released the following announcement: “Pearson confirms that it is discussing with Bertelsmann a possible combination of Penguin and Random House. The two companies have no reached an agreement and there is no certainty that the discussion will lead to a transaction. A further announcement will be made if and when appropriate.”

Random House is owned by the German media conglomerate Bertelsmann, whose ill-fated merger with Sony (creating Sony-BMG) has left them anxious to take the lead on any potential deal. Thomas Rabe, Bertelsmann’s chief executive, commented on the “pitfalls of putting creative businesses together”, which mean that one side must take ultimate control. “We have the ambition to lead,” he said.

A merger between the two companies – whose brands, it should be noted, are distinct and unlikely to be hastily dissolved – would create a 25 per cent market share, large enough to come under scrutiny from the OFT and Competition Commission. A second factor which may hinder a potential merger is the ongoing allegations of price-fixing in the US, a suit which Penguin has repeatedly contested.

The elephant in the room, as ever, is Amazon. The internet retailer, whose UK business operates from the company’s base in Luxembourg, continues to plough millions into its ebook infrastructure despite huge losses. Described by Waterstones head James Daunt as a “ruthless, money-making devil” and of “using authors as a financial football” by Curtis Brown chairman Jonathan Lloyd, the company facilitates and encourages self-publishing, which perhaps signals the endgame of their repeated attempts to undermine present publishing models. “Penguin House” may just have the reputation, power and resources to stop the internet giant in its tracks.

Phil Jones, editor of the publishing trade magazine The Bookseller, said: “The merger of Penguin and Random house would create a powerhouse of a consumer publisher across books, ebooks and apps.” Analyst Lorna Tilbian from Numis Securities concurs: “Consolidation is the order of the day,” she said. “Technology and tablet computers have given it extra momentum. They [publishers] have got to gang together to have enough clout to take on the technology giants that have transformed the industry.”

Update: This morning the merger between Penguin and Random House was confirmed. Check out The Bookseller for more information.

Berthold Lubetkin's Penguin Pool at London Zoo (Photograph: Getty Images)

Philip Maughan is a freelance writer in Berlin and a former Assistant Editor at the New Statesman.

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Drama without sensation: A Separation is an unsettling novel of distances

In Katie Kitamura’s novel, it is the distance between the narrator’s two selves that causes her most discomfort.

In a 2013 interview with Guernica, the online magazine, the novelist Katie Kitamura discussed how publishing’s “deeply patronising attitude” towards female readers results in overtly feminine book covers, featuring, for instance, women in bathing suits. “That’s not the kind of book cover that makes me want to buy a book,” she said.

The cover of Kitamura’s latest novel, A Separation, does, surprisingly, feature a woman in a bathing suit. But there is something quietly unsettling about this picture: the woman, who has her back to us, is awkwardly cropped out of frame from the elbows up, and she is sitting at the edge of an oddly shaped pool. Most of the cover is solid turquoise – a bright wash of negative space.

Kitamura’s unnamed narrator is a poised literary translator. As the novel opens in London, we learn that she is married to Christopher (a charming, haphazard non-author) but, in secret, they have been living separately for the past six months. When she receives a telephone call from Christopher’s mother, Isabella, informing her that he has seemingly gone missing in Greece, she doesn’t let on about her disintegrating marriage but boards a plane to look for him.

Much of the rest of the novel takes place in Greece: at a “very pleasant” hotel, in “perfect weather”, the pool “heated to a very comfortable temperature”. The area has recently experienced a string of devastating fires, leaving patches of scorched earth. The location has an almost eerie surface stillness that jars with the mystery at its heart. In this way, Kitamura (an art critic as well as novelist) creates a setting somehow reminiscent of David Hockney’s A Bigger Splash, Christopher’s sudden disappearance leaving behind no visible ripples.

The narrator, too, has a glassy composure at odds with the tumultuous events. On deciding to end her marriage formally, she shows neither despair nor relief, but anxiety about the etiquette. “I assumed – I had no prior experience to go on – that asking for a divorce was always discomfiting,” she says with typical understatement, “but I could not believe it was always this awkward.” Of her feelings for her new partner, Yvan, she notes that they seem more like “administration rather than passion”, and then offers a moderated gloss of Hamlet, “You cannot say you did it out of love, since at your age romantic passions have grown weak, and the heart obeys reason.

Her emotional separation from the trauma of her circumstances allows the narrator to examine the facts of her husband’s disappearance. She knows Christopher was unfaithful and she immediately identifies the hotel receptionist as the object of his attentions. We never see the narrator professionally translating, but the novel is concerned with her attempts to read the deeper meanings behind the remarks and behaviour of those around her. She finds it easy to imagine unseen contexts to conversations: an argument between Christopher’s parents, an embrace between her taxi driver and the hotel receptionist. As she writes, “Imagination, after all, costs nothing.”

Her propensity for projection is such that some things remain lost in translation. Even the most minute interactions can be misread. When Christopher’s mother comments that the two women’s love for her son connects them, “she was looking over my shoulder, as if watching someone approach . . . she was staring at nothing”. The novel occupies this imaginative negative space: the gap between what people think and how they appear.

Ultimately, it is the distance between the narrator’s two selves that causes her most discomfort. How long will she allow others to read her as the concerned, loving wife? Should she admit she wants to find Christopher in order to request that they separate officially? As her search continues she notes, “There was a small but definite wedge pushing between the person I was and the person I was purporting to be.”

There is a suspenseful and menacing tone to Kitamura’s prose that might trick a reader into thinking, at first, they are in the territory of thrillers such as Gone Girl and The Girl on the Train. Both these novels, like A Separation, have narrators who defy readers’ attempts to fathom their emotional depths and to deal with questions of how well you know anyone – even your own partner. But this is a work free of sensation, or even resolution. As the narrator notes, in the shock of an event it is natural to look for a more dramatic narrative. “But in the end,” she says, “this is only chasing shadows. The real culpability is not to be found in the dark or with a stranger, but in ourselves.”

A Separation by Katie Kitamura is published by Clerkenwell Press (231pp, £12.99)

Anna Leszkiewicz is a pop culture writer at the New Statesman.

This article first appeared in the 23 March 2017 issue of the New Statesman, Trump's permanent revolution