Rumors are swirling that Bertelsmann SE will be making inquiries with Pearson PLC about increasing its ownership of Penguin Random House.
Currently, Bertelsmann controls 53% of the company while Pearson holds the remaining 47%. Some say that the executives at Pearson would be very willing to entertain conversations about this venture. Under its the shareholders agreement, Pearson will be able to sell some or all of its shares starting in October 2015.
Here’s more from Bloomberg: “Penguin Random House, the world’s largest book publisher, could be valued at 2.3 billion euros ($2.9 billion), based on a median multiple of 6.3 times paid for book publishers in the past three years and the target’s 2013 earnings. A buyout would give Bertelsmann — which has a war chest of several billion dollars according to Chief Executive Officer Thomas Rabe — more flexibility in running the business as the media house tightens its television, online, and print operations.” What do you think this would mean for the future of Penguin Random House?