Pearson and Bertelsmann announced today that one last checkpoint before the merger of Penguin and Random House has been cleared. The US Department of Justice has signed off on the deal which was struck in October 2012.
The 2 publishing conglomerates are now one step closer to becoming a single even larger conglomerate. But before they can do that they will need to gain similar approval from Canadian and European authorities. I am hoping that approval occurs quickly, because I want the merger finalized before the full effects of the digital transition hits Random Penguin Solutions.
We are in a time of transition and radical change akin to the end of the age of the dinosaurs. Remember what happened to most of the larger creatures alive at that time? That’s about what I expect to see happen to the publishing industry, and the resounding thud from the failure of Random Penguin Solutions will be much louder than if the t conglomerates remain separate.
The fact of the matter is, folks, it’s no longer necessary to form ever larger companies in order to make more money. Thanks to the internet a handful of people in an office can reach as many customers as the most well-financed corporate appendage *cough* Bookish *cough*. And the smaller more nimble companies are more likely to weather the transition, much like the early proto-mammals survived the end of the dinosaurs.