Penguin Random House has signed a $ 2.2 billion deal to acquire Simon & Schuster from Viacom CBS. This is a huge-generation partnership that distributes about one-third of all books sold in the United States.
The merger creates an unparalleled publisher with revenues in excess of $ 3 billion, with Penguin Random House, the largest book publisher in the United States owned by Germany-based Bertelsmann, and the third largest in the United States. Simon & Schuster will be integrated. ..
As such, legal experts say the deal is likely to attract scrutiny from the US Justice Department, which will consider it.
News Corp. CEO Robert Thomson (HarperCollins is the second largest book publisher in the United States) blew up the deal in a statement Wednesday. “There is clearly no market logic for bids of that size, only anti-market logic,” Thomson said. “Bertelsmann not only buys book publishers, but also buys market dominance as a book giant. Distributors, retailers, authors and readers have spent a very long time on this proposed deal. I will pay. “
Calling the proposed combo “Literary Leviathan,” Thomson added that it dominates 70 percent of the literary and general fiction market. In particular, the deal throws best-selling authors such as John Irving, John Grisham, Stephen King, and Bob Woodward under the same roof.
“I wonder if Bertelsmann will publish them, but there will certainly be legitimate books written about the deal,” said Thomson, who is also the parent of News Corp.’s post.
HarperCollins was reportedly considered a bidder as well as Paris-based Vivendi. A News Corps spokesman declined to comment.
Simon & Schuster seems to have put up a very large price tag as the COVID-19 pandemic has increased the demand for books from consumers who are stuck at home. Publishers were particularly helped by a series of blockbuster political books related to President Trump’s storm term over the past year.
This year, Simon & Schuster unveiled blockbuster bestsellers such as Bob Woodward’s “Rage” and Donald Trump’s niece Mary Trump’s “Too Much Not Enough.” He also published “The RoomWhereItHappened” by former Trump National Security Adviser John Bolton and Fox News host Sean Hannity’s pro-Trump book “Live Freeor Die.”
Agents and authors are often worried that the focus on publishing will reduce competition and progress in book trading.
Penguin Random House CEO Marx Doll to The Associated Press on Wednesday, Simon & Schuster maintains editorial independence, and Penguin Random House and individual publishers within Simon & Schuster are in the book. He said he could continue to compete with each other over the deal.
Under the new company, all living former or current US presidents, from Jimmy Carter to Donald Trump, will publish books with the new company. So are the First Lady, such as Barbara Bush, Hillary Clinton, Laura Bush and Michelle Obama.
Penguin Random House has published Michelle Obama’s memoir “Becoming”. It has sold over 10 million copies. Also, the first volume of Barack Obama’s new memoir set a daily sales record when it was released earlier this month.
Simon & Schuster’s backlist includes Scribner authors Ernest Hemingway and F. Scott Fitzgerald. The stables of current writers include Doris Kearns Goodwin and Mary Higgins Clark.
Simon & Schuster’s current president and CEO, Jonathan Carp, will continue to lead the publisher, Bertelsmann said. Mr Dore said it was too early to speculate on whether there would be a furlough.
LionTree managed the Viacom CBS divestment auction.
With post wire
Penguin Random House Simon & Schuster Proposes $ 2.2 Billion Megamerger
Source link Penguin Random House Simon & Schuster Proposes $ 2.2 Billion Megamerger