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.

BBC/Chris Christodoulou
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Proms 2016: Violinist Ray Chen was the star of a varied show

The orchestra soaked up his energy in Bruch's first violin concerto to end on a triumphal note. 

Music matters, but so does its execution. This was the lesson of a BBC Symphony Orchestra and BBC Symphony Chorus programme which combined both a premiere of a composition and a young violinist’s first performance at the Proms. 

The concert, conducted by Sir Andrew Davis, opened with Tchaikovsky’s symphonic fantasy The Tempest, a lesser-known sibling to his Romeo and Juliet overture. The orchestra got off to a fidgety start, with some delayed entries, but fell into line in time for the frenetic chromatic runs that drive the piece. The end, a muted pizzicato, was suitably dramatic. 

Another nature-inspired piece followed – Anthony Payne’s composition for chorus and orchestra, Of Land, Sea and Sky. Payne drew on his memory of watching of white horses appearing to run across water, as well as other visual illusions. At the world premiere, the piece began promisingly. The chorus rolled back and forth slowly over scurrying strings with an eerie singing of “horses”. But the piece seemed to sink in the middle, and not even the curiosity of spoken word verse was enough to get the sinister mood back. 

No doubt much of the audience were drawn to this programme by the promise of Bruch violin concerto no. 1, but it was Ray Chen’s playing that proved to be most magnetic. The young Taiwanese-Australian soloist steered clear of melodrama in favour of a clean and animated sound. More subtle was his attention to the orchestra. The performance moved from furious cadenza to swelling sound, as if all players shared the same chain of thought. Between movements, someone coughed. I hated them. 

Ray Chen in performance. Photo: BBC/Chris Christodoulou

Chen’s playing had many audience members on their feet, and only an encore appeased them. It was his first time at the Proms, but he'll be back. 

The orchestra seemed to retain some of his energy for Vaughan Williams’ Toward the Unknown Region. Composed between 1904 and 1906, this is a setting of lines by the US poet Walt Whitman on death, and the idea of rebirth.

The orchestra and chorus blended beautifully in the delicate, dark opening. By the end, this had transformed into a triumphal arc of sound, in keeping with the joyful optimism of Whitman’s final verse: “We float/In Time and Space.” 

This movement from hesitancy to confident march seemed in many ways to capture the spirit of the concert. The programme had something for everyone. But it was Chen’s commanding performance that defined it.