Bertelsmann CEO: 'We Could Imagine Raising PRH Stake'

Shelf Awareness

Thomas Rabe

Bertelsmann is open to buying parts or all of the 47% stake in Penguin Random House that Pearson owns, CEO Thomas Rabe said today while discussing company results with reporters in Germany, as reported by Reuters.

"Publishing has always been at the heart of Bertelsmann and it always will be," Rabe said. "We could imagine raising our stake in Penguin Random house in steps." He added: "It is up to Pearson whether they want to sell or not."

Under the merger agreement between Pearson and Bertelsmann that created Penguin Random House in October 2012, each owner must hold its stake for three years and thereafter has right of first refusal.

Speculation has risen that Pearson may want to sell following the company's recent sale of the Financial Times and its stake in the Economist to focus on education.
Reuters estimated Pearson's stake in Penguin Random House to be worth about €2.5 billion ($2.8 billion).