Strategy: The Big Merge
The Big Six would be no more. And suddenly Random Penguin—heretofore a fanciful, zen-like amalgamation of syllables—was a thing. Not yet a reality, because these things take time, but an agreement. An agreement announced in an email on a dark and rainy night.
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Of course, between now and when the transaction is closed (likely late 2013 pending regulatory approval), official news about the Random House Penguin venture is expected to be scarce. And yet questions abound. Why did two of the biggest players in book publishing throw in their lot together? Will further contraction occur in its wake? Will this give the new entity more leverage in its negotiations with mighty Amazon? And if so, will it be enough to matter?