After a federal judge rejected the acquisition of Simon & Schuster by rival publisher Penguin Random House due to worries that competition would lead the book industry to contract, Simon & Schuster has now been sold to the private equity firm KKR. A KKR executive describes the deal as an opportunity to collaborate with “one of the most effective” book publishers.
According to Paramount Global, the parent company of the illustrious publishing business, the private equity goliath will purchase Simon & Schuster for $1.62 billion in cash. Simon & Schuster will function independently, with CEO Jonathan Karp in charge.
We are happy, Karp stated on Monday. “We will continue to be a stand-alone business, and with KKR’s assistance, we may grow even more successful.
The money from the sale will be used by Paramount to reduce debt. The studio announced a $424 million deficit for the three months ending on June 30 on Monday. Government clearance of the agreement is required, but it is unlikely to encounter the same challenges the Penguin Random House deal had.
One of the “Big Five” of New York publishing houses is Simon & Schuster, which publishes writers including Stephen King, Colleen Hoover, and Bob Woodward. The other four are Penguin Random House, HarperCollins Publishers, Hachette Book Group, and Macmillan. Rupert Murdoch’s News Corp.-owned HarperCollins had previously expressed interest in acquiring Simon & Schuster.
Even if the book market has slowed down over the previous two years, Simon & Schuster has had good sales. Some of the most eagerly awaited autumn publications have been scheduled by the publisher, including Britney Spears’ autobiography “The Woman In Me” and Walter Isaacson’s biography of Elon Musk.
Simon & Schuster was commended as efficient and well-run by Richard Sarnoff, chair of media at KKR, who also stated that it would maintain its editorial freedom.
Former official at Bertelsmann, the parent firm of Penguin Random House, said, “We’re not going to tell them what to buy, what to publish, or what not to publish.” We will uphold the editorial freedom that has existed for 99 years.
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