Bertelsmann $1 billion acquisition of 22% stake in Penguin Random House

Overview:

• Bertelsmann has acquired a further 22% stake in Penguin Random House (PRH) from Pearson for $1 billion.
• Penguin Random House (PRH) is the world's biggest publisher and the deal values the company at £2.75 billion. The company was formed as a joint venture between Pearson and Bertelsmann in 2013.
• Bertelsmann is a German media company and is already the majority shareholder in PRH.
• The deal has come about partly due to Pearson's financial position, with the company issuing a number of recent profit warnings from its education arm.
• Pearson has sold a number of it flagship businesses in recent years including The Economist and the Financial Times Group.
• The deal leaves Pearson with a 25% stake and the company has an 18 month lock-in period before it can look at any further share sale, according to The Guardian.

Sam Duke - Editor