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.

Photo: Channel 4
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Who will win Great British Bake Off 2017 based on the contestants’ Twitters

An extremely serious and damning investigation. 

It was morning but the sky was as dark as the night – and the night was as dark as a quite dark rat. He walked in. A real smooth gent with legs for seconds. His pins were draped in the finest boot-cut jeans money could buy, and bad news was written all over his face. “I’m Paul,” he said. “I know”. My hooch ran dry that night – but the conversation never did. By nightfall, it was clear as a see-through rat.   

Some might say that going amateur detective to figure out which contestants win and lose in this year’s Great British Bake Off is spoiling the fun faster than a Baked Alaska left out of the freezer. To those people I’d say: yes. The following article is not fun. It is a serious and intense week-by-week breakdown of who will leave GBBO in 2017. How? Using the contestants’ Twitter and Instagram accounts, of course.

The clues are simple but manifold, like a rat with cousins. They include:

  • The date a contestant signed up for social media (was it during, or after, the competition?)
  • Whether a contestant follows any of the others (indicating they had a chance to bond)
  • A contestant’s personal blog and headshots (has the contestant already snaffled a PR?)
  • Pictures of the contestant's baking.
  • Whether a baker refers to themselves as a “baker” or “contestant” (I still haven’t figured this one out but FOR GOD’S SAKE WATSON, THERE’S SOMETHING IN IT)

Using these and other damning, damning, damning clues, I have broken down the contestants into early leavers, mid-season departures, and finalists. I apologise for what I have done.

Early leavers

Kate

Kate appears not to have a Twitter – or at least not one that the other contestants fancy following. This means she likely doesn’t have a book deal on the way, as she’d need to start building her social media presence now. Plus, look at how she’s holding that fork. That’s not how you hold a fork, Kate.

Estimated departure: Week 1

Julia

This year’s Bake Off began filming on 30 April and each series has ten episodes, meaning filming ran until at least 9 July. Julia first tweeted on 8 May – a Monday, presumably after a Sunday of filming. Her Instagram shows she baked throughout June and then – aha! – went on holiday. What does this mean? What does anything mean?

Estimated departure: Week 2

James

James has a swish blog that could indicate a PR pal (and a marketing agency recently followed him on Twitter). That said, after an April and May hiatus, James began tweeting regularly in June – DID HE PERHAPS HAVE A SUDDEN INFLUX OF FREE TIME? No one can say. Except me. I can and I am.

Estimated departure: Week 3

Tom

Token-hottie Tom is a real trickster, as a social media-savvy youngster. That said, he tweeted about being distracted at work today, indicating he is still in his old job as opposed to working on his latest range of wooden spoons. His Instagram is suspiciously private and his Twitter sparked into activity in June. What secrets lurk behind that mysteriously hot face? What is he trying to tell me, and only me, at this time?

Estimated departure: Week 4

Peter

Peter’s blog is EXCEPTIONALLY swish, but he does work in IT, meaning this isn’t a huge clue about any potential managers. Although Peter’s bakes look as beautiful as the moon itself, he joined Twitter in May and started blogging then too, suggesting he had a wee bit of spare time on his hands. What’s more, his blog says he likes to incorporate coconut as an ingredient in “everything” he bakes, and there is absolutely no bread-baking way Paul Hollywood will stand for that.

Estimated departure: Week 5

Mid-season departures

Stacey

Stacey’s buns ain’t got it going on. The mum of three only started tweeting today – and this was simply to retweet GBBO’s official announcements. That said, Stacey appears to have cooked a courgette cake on 9 June, indicating she stays in the competition until at least free-from week (or she’s just a massive sadist).

Estimated departure: Week 6

Chris

Chris is a tricky one, as he’s already verified on Twitter and was already solidly social media famous before GBBO. The one stinker of a clue he did leave, however, was tweeting about baking a cake without sugar on 5 June. As he was in London on 18 June (a Sunday, and therefore a GBBO filming day) and between the free-from week and this date he tweeted about bread and biscuits (which are traditionally filmed before free-from week in Bake Off history) I suspect he left just before, or slap bang on, Week 7. ARE YOU PROUD NOW, MOTHER?

Estimated departure: Week 7

Flo

Flo’s personal motto is “Flo leaves no clues”, or at least I assume it is because truly, the lady doesn’t. She’s the oldest Bake Off contestant ever, meaning we can forgive her for not logging onto the WWWs. I am certain she’ll join Twitter once she realises how many people love her, a bit like Val of seasons past. See you soon, Flo. See you soon.

Estimated departure: Week 8

Liam

Liam either left in Week 1 or Week 9 – with 0 percent chance it was any of the weeks in between. The boy is an enigma – a cupcake conundrum, a macaron mystery. His bagel-eyed Twitter profile picture could realistically either be a professional shot OR taken by an A-Level mate with his dad’s camera. He tweeted calling his other contestants “family”, but he also only follows ONE of them on the site. Oh, oh, oh, mysterious boy, I want to get close to you. Move your baking next to mine.

Estimated departure: Week 9

Finalists

Steven

Twitter bios are laden with hidden meanings and Steven Carter-Bailey’s doesn’t disappoint. His bio tells people to tune in “every” (every!) Tuesday and he has started his own hashtag, #StevenGBBO. As he only started tweeting 4 August (indicating he was a busy lil baker before this point) AND his cakes look exceptionally lovely, this boy stinks of finalist.  

(That said, he has never tweeted about bread, meaning he potentially got chucked out on week three, Paul Hollywood’s reckoning.)

Sophie

Sophie’s Twitter trail is the most revealing of the lot, as the bike-loving baker recently followed a talent agency on the site. This agency represents one of last year’s GBBO bakers who left just before the finale. It’s clear Sophie’s rising faster than some saffron-infused sourdough left overnight in Mary’s proving drawer. Either that or she's bolder than Candice's lipstick. 

Chuen-Yan

Since joining Twitter in April 2017, Yan has been remarkably silent. Does this indicate an early departure? Yes, probably. Despite this, I’m going to put her as a finalist. She looks really nice. 

Amelia Tait is a technology and digital culture writer at the New Statesman.