Penguin Random House has lost its CEO
2022.12.09 09:00
Penguin Random House has lost its CEO
Budrigannews.com – After a U.S. judge stopped a planned $2.2 billion merger between the world’s largest publisher and rival Simon & Schuster, Penguin Random House announced in a statement on Friday that head Markus Dohle would resign at the end of the year.
It added that he had quit “at his own request and on the best of mutual terms.”
According to the company, Nihar Malaviya, who is currently president and chief operating officer of Penguin Random House U.S., will assume the role of interim CEO on January 1.
“Malaviya has a chance of permanently becoming CEO,” said Thomas Rabe, chief executive of Bertelsmann, the German owner of Penguin. “Over the next year, we’re looking into that,” he told Reuters.
He stated that the business would concentrate on acquisitions of smaller and mid-sized businesses in the United States and other nations.
He stated, “As part of our Boost strategy, we will invest several hundred million euros in the acquisition of book publishers worldwide by 2025.”
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Bertelsmann initially stated that it would appeal the decision of the US judge, but after speaking with Simon & Schuster’s owner, Paramount Global, the company decided last month to end the deal.
“In the market for the U.S. publishing rights to anticipated top-selling books,” as judge Florence Pan of the U.S. District Court for the District of Columbia stated on October 31, “the Justice Department had shown the deal could substantially lessen competition.”
Penguin will pay Paramount a termination fee of $200 million as a result of the deal’s dissolution.
Rabe stated that Bertelsmann wants to keep its focus on the United States despite the setback.
“There, we are clearly the market leader. “On the cost and revenue side, every acquisition, no matter how big or small,” he said.
