Penguin Random House, the largest book publisher in the world, is chopping off its self-publishing arm. The company said Tuesday (Jan. 5) that it has sold Author Solutions—the self-publishing author-tools platform that it bought in 2012—to an unnamed affiliate of US private equity firm Najafi Companies for an undisclosed sum.. . . .By the numbers, self-publishing should be a lucrative endeavor.In 2015, author-published books accounted for 18% of the entire book market in the US; the industry’s growth is staggering, and some firms predict the business could eventually get as big as $52 billion.
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Analysts told the Financial Times that Penguin Random House likely sold the company for a fraction of the $116 million it paid in 2012.
But whether driven by sinking profits or negative publicity, Penguin Random House’s exit from self-publishing is also an admission of defeat: The giant self-publishing market essentially now falls largely to Amazon, which already churns out an estimated 85% of self-published titles via its various platforms.
Link to the rest at Quartz and thanks to Jan for the tip.