But the operation was blocked by a decision by a federal judge who considered it an obstacle to competition in the book market. The terms of the acquisition, which are subject to government approval in any case, have been announced by Paramount Global, the parent company of the publishing house.
Publisher: Simon & Schuster Switches to KKR After Judge Declines Penguin Random House
KKR, a large private equity firm, will buy Simon & Schuster for $1.62 billion in cash. However, Simon & Schuster will operate as a stand-alone organization under a CEO. Jonathan Karpwho, in a statement after closing the deal, said: “We will remain an independent company and not only continue to thrive, but with the help of KKR we can grow even bigger.”
The injection of cash into its treasury will immediately benefit Paramount, which yesterday posted a loss of $424 million for the three months ended June 30, and will use the proceeds of the sale to pay off its debt. The “portfolio” of authors edited by Simon & Schuster includes, among others, Stephen King, Colleen Hoover and Bob Woodward. The house is part of that small group of publishers called the “Big Five” of the New York publishing house that represents the goth of the sector, along with Penguin Random House, HarperCollins Publishers (who also entered the race to acquire S&S). , Hachette Book Group and Macmillan.
Simon & Schuster, which has had strong sales over the past two years, has some of the most anticipated fall releases lined up, including Britney Spears’ memoir The Woman in Me and Elon Musk’s Walter Isaacs biography.
Richard Sarnoff, president of KKR media, excluding staff cuts, said KKR looks forward to investing in and expanding Simon & Schuster, citing international sales as an area of potential growth.
Paramount’s intention to sell Simon & Schuster to Penguin Random House for $2.2 billion was announced in late 2020 in a deal that would make the new company by far the largest in the United States.
acquiring a position that U.S. District Judge Florence Y. Peng, while welcoming government opposition, has blocked, representing, in her opinion, “significant harm to competition.”