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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There are only two rules for an evening drink: it must be bitter, and it must be cold

A Negroni is the aperitif of choice in bars everywhere from London to Palermo - and no wonder.

The aperitif has the odd distinction of being the only alcohol that can always rely on a sober audience: it is the opener, the stimulant, a spur to the appetite for good food and good conversation. This preparatory beverage is considered the height of sophistication, and certainly nobody labouring in field or factory ever required a pep to their evening appetite. Still, to take a drink before one starts drinking is hardly clever behaviour. So why do it?

One reason is surely the wish to separate the working day from the evening’s leisure, an increasingly pressing matter as we lose the ability to switch off. This may change the nature of the aperitif, which was generally supposed to be light, in alcohol and character. Once, one was expected to quaff a pre-dinner drink and go in to dine with faculties and taste buds intact; now, it might be more important for those who want an uninterrupted meal to get preprandially plastered. That way, your colleagues may contact you but they won’t get much sense out of you, and pretty soon they’ll give up and bother someone else.

The nicest thing about the aperitif, and the most dangerous, is that it doesn’t follow rules. It’s meant to be low in alcohol, but nobody ever accused a gin and tonic or a Negroni (Campari, gin and vermouth in equal portions) of that failing; and sherry, which is a fabulous aperitif (not least because you can keep drinking it until the meal or the bottle ends), has more degrees of alcohol than most wines. An aperitif should not be heavily perfumed or flavoured, for fear of spoiling your palate, yet some people love pastis, the French aniseed drink that goes cloudy in water, and that you can practically smell across the Channel. They say the scent actually enhances appetite.

Really only two rules apply. An aperitif should be bitter – or, at any rate, it shouldn’t be sweet, whatever the fans of red vermouth may tell you. And it must be cold. Warm drinks such as Cognac and port are for after dinner. Not for nothing did Édith Piaf warble, in “Mon apéro”, about drowning her amorous disappointments in aperitifs: fail to cool your passions before sharing a table, and you belong with the barbarians.

On the other hand, conversing with your nearest over a small snack and an appropriate beverage, beyond the office and before the courtesies and complications of the dinner table, is the essence of cultured behaviour. If, as is sometimes thought, civilisation has a pinnacle, surely it has a chilled apéro carefully balanced on top.

The received wisdom is that the French and Italians, with their apéritifs and aperitivos, are the experts in these kinds of drinks. Certainly the latter are partial to their Aperol spritzes, and the former to such horrid, wine-based tipples as Lillet and Dubonnet. But the English are good at gin and the Americans invented the Martini. As for Spain, tapas were originally snacks atop a covering that kept the flies out of one’s pre-dinner drink: tapa means lid.

Everywhere, it seems, as evening approaches, people crave a drink that in turn will make them salivate: bitterness, the experts tell us, prepares the mouth to welcome food. The word “bitter” may come from “bite”, in which case the aperitif’s place before dinner is assured.

I like to think that a good one enables the drinker to drown all sour feelings, and go in to dinner cleansed and purified. Fanciful, perhaps. But what better lure to fancy than a beverage that exists only to bring on the evening’s pleasures?

Nina Caplan is the Louis Roederer Pio Cesare Food and Wine Writer of the Year

Nina Caplan is the 2014 Fortnum & Mason Drink Writer of the Year and 2014 Louis Roederer International Wine Columnist of the Year for her columns on drink in the New Statesman. She tweets as @NinaCaplan.

This article first appeared in the 22 September 2016 issue of the New Statesman, The New Times