Penguin Random House chief quits after $2.2bn takeover deal fails
THE chief executive of Penguin Random House is stepping down following the collapse of the publisher’s $2.2bn (£1.9bn) takeover of rival Simon & Schuster.
Markus Dohle, who led Random House before its merger with Penguin in 2013, has overseen the group’s expansion over 15 years into the world’s biggest book publisher.
Penguin’s roster of authors includes George Orwell, John Le Carré and Margaret Atwood.
The company employs more than 10,000 people worldwide and publishes nearly 15,000 titles per year.
It is preparing to publish the Duke of Sussex’s memoir, Spare, early next year in what is likely to be one of 2023’s biggest releases.
Mr Dohle’s departure follows the collapse of the publisher’s planned tieup with Simon & Schuster last month.
The deal was blocked by a US judge over concerns it would harm competi- tion. In a message to staff yesterday Mr Dohle said his time at the helm of the company had been “the honour of my professional life – and a lot of fun” but that it was “time to hand over the next chapter”.
Christopher Mohn, chairman of Penguin Random House’s parent company Bertelsmann, said he regretted Mr Dohle’s decision to step down.
He added that the publishing chief had “sustainably focused Penguin Random House on growth and profitability”. Mr Dohle’s departure comes amid a series of setbacks for Germany’s Bertelsmann. Regulators also derailed the company’s attempt to merge French broadcaster M6 with larger rival TF1 in September.
Mr Dohle, who began his career at Bertelsmann in 1994, will be replaced on an interim basis by Nihar Malaviya. currently president and chief operating officer of Penguin Random House US.
Penguin faces questions over its future direction after the Simon & Schuster deal fell through.
The publisher is also battling with wider industry challenges amid a sharp jump in paper and energy costs. Mr Dohle said: “I don’t underestimate the current macroeconomic and geopolitical challenges.
“But rest assured that my view on the future of our beloved book industry and Penguin Random House’s role and position in it is as optimistic as ever – and my optimism is based on data and facts.”
Thomas Rabe, chief executive of Bertelsmann, described Mr Malaviya as an “outstanding” leader who knew the company “inside out”.