The British publishing group Pearson is stepping out of Penguin Random House, the company behind the well-known Penguin pocket books. The company has for some time been phasing out its interest in the partnership with the German media company Bertellsman to focus more on digital teaching materials. Pearson’s CEO, John Fallon, also announced his resignation.
Pearson sells his remaining 25 percent stake in Penguin Random House to Bertelsmann for $ 675 million. This deal hangs a $ 3.7 billion price tag on the world’s largest book publisher, which arose in 2013 from the merger of Penguin Books and Random House.
Pearson has recently had to contend with falling profits, partly because the switch to online teaching material is difficult. Shares of the company lost in value this year when Peason said the sale of digital study material at American universities was disappointing. Among other free alternatives, Pearson’s sales figures play a role.