Today Pearson confirmed that it in talks about “a possible combination of Penguin and Random House.”
Pearson had this statement: “Pearson confirms that it is discussing with Bertelsmann a possible combination of Penguin and Random House. The two companies have not reached agreement and there is no certainty that the discussions will lead to a transaction. A further announcement will be made if and when appropriate.
This is a terrible idea. There's already a lack of diversity and innovation at the remaining big six mega-publishers, and a consolidation of two of the biggest publishers would only make that worse. The publishing industry is in the process of screwing up as badly as the record industry did during the digital music explosion. Becoming even bigger is not the answer.