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Originally Posted by CommonReader
Did anyone say anything about killing Amazon? So what's the point of the hyperbole?
Anyway, Bertelsmann is a family operation and they aren't much into IPOs, even if they say so in a press blurb. If they are happy with the numbers they are more likely to buy out Pearson.
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The kill amazon stuff is not in the press release, true.
The "Industry analysts" that see the merger and consolidation of market power as a *great* move are the ones bringing that up. In pretty much ever article.
As for reading Bertleman's mind, that's not a productive endeavor.
All I know is what has been publicly stated about the joint venture; that there is a pre-negotiated mechanism for an IPO and that if the IPO is not viable, the fallback is for Bertlesmann to buy out Pearson.
To me that reads as Pearson wants out at any cost, ASAP, and Bertlemann will get out *when* they can get a good enough price in the IPO.
Perfectly reasonable when you consider the ongoing evolution of the business; Penguin and RH both have very deep backlists so the IPO should be quite profitable even if the combined entity stops buying new manuscripts altogether. I'm thinking that a lot of people are undervaluing the BPH's backlist contracts and way overvaluing the active infrastructure and staff; as time goes on, the former will be moving to the fore and the second will get downsized. By separating the combined company from the rest of the media conglomerate they can get the investment community to properly value the assets. (This *has* happened before.)
The Random Penguin might very well go the way of MGM.
http://en.wikipedia.org/wiki/Metro-G...C_and_Parretti