The company to be called Penguin Random House, will boast $4 billion in revenue and control about 25 percent of the worldwide consumer book market.

Bertelsmann owner of Random house among others would control 53 percent of the combined entity and Pearson 47 percent.

This merge will give greater scale to deal with the challenges arising from the growth of electronic books and the power of Internet retailers wielded by Internet giants like Google, Apple and, especially, Amazon.

The goal of the new company is not about cost efficiency, but about efficiency in better services.

Find attached a flow chart in order to clarify the structure.

Hope you find it interesting.