Publishing giants' merger talks could create "world's biggest" firm
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London - British publishing group Pearson, which owns Penguin and the Financial Times, confirmed Friday that it is in merger talks with Random House, which belongs to Germany's Bertelsmann, Europe's biggest media concern.
"The two companies have not reached agreement and there is no certainty that the discussions will lead to a transaction," Pearson said in comment to reports about the merger talks.
If the talks are successful, however, they would create the world's biggest book publisher, the Guardian reported Friday.
The move would bolster both companies in the face of a changing market, driven by the rise of the e-book from the likes of Amazon, Apple and Google, analysts said.
The merger talks come less than a month after Pearson chief executive Marjorie Scardino said she would step down as chief executive after 15 years at the helm.
British media reports said the merger, if carried out, was likely to be referred to the competition authorities.//DPA
