In a significant development for the Australian publishing industry, global giant Penguin Random House (PRH) has acquired the Text Publishing Company, one of Australia’s most prominent independent publishers. The move, announced on Wednesday, consolidates PRH’s already strong position in the Australian and New Zealand markets.
Text, founded in Melbourne over 35 years ago, has built a reputation for publishing critically acclaimed and commercially successful books by Australian authors such as Helen Garner, Tim Flannery, and Kate Grenville. The publisher’s titles have garnered international recognition, with shortlistings for major awards like the Nobel Prize, Booker Prize, and Pulitzer Prize.
Continuity and Creative Control
Despite the change in ownership, Text’s leadership has emphasized that the publisher will maintain its independence and distinctive identity. In a statement, Text co-founder and publisher Michael Heyward assured that:
Text will continue to retain creative control of all of its key publishing processes – acquisition of books, editing of books, curation of the list, publicity, marketing, design, production, export and rights.
– Michael Heyward, Text Publishing Company
Heyward also confirmed that the longstanding exclusive distribution deal between Text and PRH in Australia and New Zealand would remain in place. Additionally, no redundancies are planned for Text’s Melbourne office following the acquisition.
Consolidation Concerns
The PRH acquisition of Text marks the second major takeover of an independent Australian publisher by a multinational in recent months, following the August acquisition of Affirm Press by Simon & Schuster. These developments have raised concerns about the consolidation of the publishing industry and its potential impact on competition, author incomes, and the visibility of Australian voices.
An industry insider, speaking to The Guardian, noted that “Australian literary fiction is doing it really hard” and expressed skepticism about assurances of continued independence post-acquisition. They pointed to the likelihood of restructuring and the elimination of duplicate roles in areas like marketing, publishing support, and editing.
Market Challenges
The Text acquisition comes amidst a challenging period for the Australian book market. According to Nielsen BookScan data, the market in 2024 experienced a 3% decline in value and a 1.2% drop in volume compared to the previous year. The bestseller lists were dominated by cookbooks, self-help titles, biographies, and novels by American authors, with only one Australian author, Liane Moriarty, making the top 10.
As major publishers seek to strengthen their positions through acquisitions and consolidation, questions remain about the future of independent publishing in Australia and the ability of local authors to thrive in an increasingly globalized market. While Text’s leadership remains optimistic about the opportunities the PRH acquisition presents, the long-term impact on the Australian literary landscape remains to be seen.
