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 Assistant Editor at the New Statesman.

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Harry Potter and the Minotaur’s Rage: how fanfiction got me into writing

My fanfiction was almost uniformly awful, like most of the things I did or liked when I was becoming myself.

The source of the noise was clear. Some kind of monster was emerging from the wood.

"Easy, Harry," counselled Hagrid, "Easy.”

Nervously, the bespectacled wizard approached the hulking beast cautiously. What was it? It had red leather skin, like a sofa, was bigger even than Hagrid and had a pair of cruel horns.

You may not recognise the above passage from any of J K Rowling’s seven entries in the Harry Potter series. That’s because it’s not by Rowling at all, but is taken from Harry Potter and the Minotaur’s Rage by awideyedwanderer, the alias under which I, with the addition and subtraction of a few dashes and underscores depending on the platform, wrote fanfiction from 2000 to 2006.

To deal with the obvious questions, no, it was not about the Labour party, and no, I don’t think anyone ever had sex, except perhaps very briefly towards the end of the story. (As such, it was a fairly accurate reflection on the life of its author during that period.)

Fanfiction often gets a bad rap, in my case deservedly. One former editor of the New Statesman used to say of one of his staffers that he was “the Fred West of prose”, and my fanfiction was not much better. I hacked my way through the universes of Harry Potter, Doctor Who, A Series of Unfortunate Events, Final Fantasy and Star Trek. I also perpetrated my own, highly derivative “original” fiction, featuring a character called Mr Jones who was basically Doctor Who with a gun.

My fanfiction was influenced by whatever novel I was reading and whatever the current state of my politics were, which meant that as the Noughties wore on it became increasingly dominated by thinly-veiled allegories for the excesses of the Bush administration and the war in Iraq.

What got me started? Well, it’s all J K Rowling’s fault. I was an early adopter of the Harry Potter books, and though the first three books came out every year, there was a three-year gap between The Goblet of Fire and The Order of the Phoenix. So without a new book, Potter fans had to write their own, of which Harry Potter and the Minotaur’s Rage was one.

At this point in this sort of article, it’s usually customary to defend fanfiction by pointing out that some of it is actually very good, while some of it has made a great deal of money. My fanfiction was neither good nor financially lucrative, but I always think this misses the point a bit. Very few people think they are producing high art when they write fanfic – people are doing it to have a good time, to expand a world they’ve enjoyed.

My fanfiction was almost uniformly awful, like most of the things I did or liked when I was becoming myself. (In its defence, I think my fanfiction has aged better than Evanescence, a band which provided the soundtrack and most of the chapter titles to my fic.) But I had a great time writing it, and if nothing else, it taught me never to begin a sentence with “nervously” and end it with “cautiously”.

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.