Who would have thought … two giants in publishing are doing the merger waltz? —this times it’s Penguin and Random House. The negotiations are on for what the surviving and new publishing company will look like including who will be exiting the building. The new company, to be called Penguin Random House, will boast $4 billion in revenue and control about 25 percent of the worldwide consumer book market.
There will be obvious changes: to save money … to make money. When two companies, any company that has a similarity such as Penguin and Random House, Noah’s Ark doesn’t work. Picture this: Between the two, there are over 9,000 employees across the globe. Some, maybe plenty, are going to go—it’s the Noah’s Ark factor. Expect to see imprints disappear; with them, editors will get the pink slip. The multiple duplicate accounts—the warehousing, distribution, accounting, technology and operations in general … all will most likely come under a single operation when it’s over.
Negotiating with the other giant, Amazon, will become interesting. Whether these two get into a pissing publishing match over just how much the discounts will be—it’s clear that it will have a dominoing effect within the entire industry.
Not only is the author … the creator of the product that these two Goliaths sell … in for a squeeze, so is the literary agent. How so? Most likely, the number of agents will be further reduced—the remaining agents will be “thrilled” to get any type of deal that is offered by the reduced filed of editors acquiring books. For the biggies, it means fewer auctions for agents to create. In the end, less leads to less.
With the recent announcement that Wal-Mart will no longer offer to sell into Amazon’s Kindle market, the Goliaths will continue their battles. Where next will the speeding bullet land?
Judith Briles is known as The Book Shepherd (www.TheBookShepherd.com), an author and book publishing expert and the Founder of Author U (www.AuthorU.org), a membership organization created for the author who wants to be seriously successful. She’s been writing about and conducting workshops on publishing since the 80s. Judith is the author of 30 books including Show Me About Book Publishing, co-written with John Kremer and Rick Frishman and a speaker at publishing conferences. Her latest, Author YOU: Creating and Building Your Author and Book Platforms is just being released. Join Judith live on Thursdays at 6 p.m. EST for Your Guide to Book publishing on the www.RockStarRadioNetwork.com. Follow @AuthorU and @MyBookShepherd on Twitter and do a “Like” at AuthorU and TheBookShepherd on Facebook. If you want to create a book that has no regrets, contact her at Judith@Briles.com.
If you are looking for FREE author and book coaching … call in to Judith’s Author Monday Mornings at NOON Eastern each Monday. The number is 218-632-9854; Access Code 1239874444 … have your questions ready–there’s a full hour to ask and listen.
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