Penguin Sells Self-Publishing Company
January 05 2016 - 4:00PM
Dow Jones News
Penguin Random House has sold self-publishing company Author
Solutions to an affiliate of Najafi Cos., a Phoenix-based
private-equity firm.
The deal, which closed Dec. 31, was announced Tuesday. Financial
terms weren't disclosed. Penguin Group had acquired Author
Solutions, based in Bloomington, Ind., in 2012 for $116
million.
Jahm Najafi, who heads Najafi Cos., is well-known in the book
industry. He attempted to acquire Borders Group Inc. out of
bankruptcy in 2011, but his efforts fell short and the bookstore
chain was liquidated. With Author Solutions, Mr. Najafi is getting
a company that has enabled more than 200,000 authors to
self-publish more than 250,000 titles, according to Keith Ogorek,
Author Solutions' senior vice president of marketing.
"It's consistent with our philosophy of trying to connect
content owners with consumers," said Mr. Najafi in an interview.
"We think there's room for growth domestically and internationally.
There are many people interested in sharing their ideas who can't
go through traditional channels."
When Penguin Group bought Author Solutions from private-equity
firm Bertram Capital Management LLC, the publishing industry was
facing a growing competitive challenge from independent authors who
primarily published via e-books. John Makinson, who then headed
Penguin, said he saw the purchase as a way to learn more about
customer buying and reading habits.
Penguin subsequently merged with Random House in 2013, forming
Penguin Random House, majority owned by Bertelsmann SE. Penguin
Random House has since shown little appetite for the
self-publishing business, preferring instead to focus on its core
publishing business.
In a note to employees Tuesday, Markus Dohle, CEO of Penguin
Random House, wrote that the sale reaffirms "our focus on consumer
book publishing through our 250 imprints worldwide."
Andrew Phillips, chief executive of Author Solutions, is staying
in place, according to Mr. Ogorek. The company has imprints
including AuthorHouse, iUniverse, and Trafford Publishing.
Write to Jeffrey A. Trachtenberg at
jeffrey.trachtenberg@wsj.com
(END) Dow Jones Newswires
January 05, 2016 15:45 ET (20:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Pearson (NYSE:PSO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Pearson (NYSE:PSO)
Historical Stock Chart
From Apr 2023 to Apr 2024