Random House
In 1927, two businessmen named Bennett Cerf and Donald Klopfer established Random House as an imprint of Modern Library. They had acquired the parent company just two years prior from publisher Horace Liveright. Cerf later recalled their original intent with a simple phrase about publishing books on the side at random. This casual approach quickly evolved into a formidable force in American literature. The company published its first major authorized edition of James Joyce's Ulysses in 1934. That single title transformed Random House over the next two decades into a serious literary power. In 1936, they purchased Smith and Haas to add authors like William Faulkner and Isak Dinesen. Robert Haas joined as a third partner before selling his share back to Cerf and Klopfer in 1956. Editors Harry Maule, Robert Linscott, and Saxe Commins arrived with new talent including Sinclair Lewis. The firm entered reference publishing in 1947 with the American College Dictionary. A decade later, they released their first unabridged dictionary. By October 1959, Random House went public at $11.25 per share. This move influenced other publishers like Simon & Schuster to follow suit. The company acquired Alfred A. Knopf, Inc. and Beginner Books in 1960. Pantheon Books followed in 1961, maintaining editorial independence under imprints like Everyman's Library.
RCA purchased Random House in 1965 as part of a corporate diversification strategy. The media giant sold the publisher to Advance Publications in 1980. During this era, Random House acquired Ballantine Books, a paperback publisher, in 1973. They began producing audiobooks in 1985, marking a shift toward audio formats. Crown Publishing Group was added to the portfolio in 1988. That same year, McGraw-Hill took over the Schools and Colleges division. Bertelsmann AG bought Random House in 1998 and merged it with Bantam Doubleday Dell. The German conglomerate made the company global almost immediately. In 1999, they acquired Listening Library, a children's audiobook publisher. The distribution division was sold off that year. Phyllis E. Grann joined as vice chairman in 2001 after growing Putnam from $10 million to over $200 million in revenue. CEO Peter Olson stepped down in May 2008 and was replaced by Markus Dohle. October 2008 saw layoffs at Doubleday affecting approximately 10% of its workforce. Early December 2008 became known as Black Wednesday for many publishers restructuring their divisions. Three new groups emerged: Random House Publishing Group, Knopf Doubleday Publishing Group, and Crown Publishing Group.
Random House and Penguin Group completed their merger on the 1st of July 2013. This created Penguin Random House, now owned entirely by Bertelsmann. When founded, Bertelsmann held 53% of the joint venture while Pearson plc held 47%. Pearson sold 22% of its shares to Bertelsmann in July 2017. By April 2020, the company became a wholly owned subsidiary of the German parent. At the time of acquisition, the combined entities controlled 25% of the book business. The new organization employed more than 10,000 people across 250 independent publishing imprints. Annual revenues reached about $3.9 billion during this consolidation period. The move aimed to provide leverage against Amazon.com and battle shrinking bookstore markets. In October 2018, Penguin Random House merged Random House with Crown Publishing Group. Madeline McIntosh, chief executive of Penguin Random House U.S., stated both lines would retain distinct editorial identities. She explained that book discovery patterns were shifting toward nonfiction categories like food, lifestyle, health, and wellness. The company invested aggressively in title-level marketing programs and partnerships. In 2019, they acquired British children's publisher Little Tiger Group including Tiger Tales Press. Boom! Studios was purchased in July 2024 to become part of Random House Worlds.
The main office for Random House sits at 1745 Broadway in Manhattan within the Penguin Random House Tower. This 684-foot building spans between West 55th and West 56th Streets and opened in 2009. Its lobby features floor-to-ceiling glassed-in bookcases filled with books from the company and its subsidiaries. Prior locations included 457 Madison Avenue, 20 East 57th Street, and 201 East 50th Street. The Random House Group operates as one of the largest general book publishers in the United Kingdom based in London. Nine publishing companies comprise this group including Cornerstone Publishing and Vintage Publishing. Distribution services cover 40 other UK publishers through Grantham Book Services. The archive and library reside in Rushden, Northamptonshire. Century Hutchinson folded into the British group in 1989 before becoming an imprint of Cornerstone Publishing. Branches exist in Australia, New Zealand, South Africa, and India under various structures. Australian offices operate out of Sydney and Melbourne while New Zealand is based in Glenfield, Auckland. Indian headquarters are located in New Delhi. Verlagsgruppe Random House serves Germany with about 850 employees publishing roughly 2,500 titles annually. It maintains locations in Munich, Gütersloh, Cologne, and Aßlar. Penguin Verlag was founded for the German market in 2015 and reintegrated after Bertelsmann acquired full ownership in April 2020.
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Common questions
When was Random House established and by whom?
Random House was established in 1927 by two businessmen named Bennett Cerf and Donald Klopfer. They acquired the parent company Modern Library from publisher Horace Liveright just two years prior to founding their imprint.
What major literary work did Random House publish first in 1934?
The company published its first major authorized edition of James Joyce's Ulysses in 1934. This single title transformed Random House over the next two decades into a serious literary power.
Who purchased Random House in 1965 and when did it go public?
RCA purchased Random House in 1965 as part of a corporate diversification strategy. The company went public in October 1959 at $11.25 per share before RCA acquired it six years later.
When did Random House merge with Penguin Group to form Penguin Random House?
Random House and Penguin Group completed their merger on the 1st of July 2013. This created Penguin Random House which is now owned entirely by Bertelsmann.
Where is the main office for Random House located today?
The main office for Random House sits at 1745 Broadway in Manhattan within the Penguin Random House Tower. This 684-foot building spans between West 55th and West 56th Streets and opened in 2009.